A "Buy-Write" strategy, also called a "covered call strategy", is an investment approach in which the investor buys a stock or a basket of stocks and writes (or sells) call options that 'cover' the stock position. The strategy can be used to enhance portfolio returns under certain market conditions and to reduce volatility. In down markets, the option premium received cushions the price decline in an equity portfolio. The trade-off is that in strong equity markets, the upside potential of the equity investment is limited.

Capstone's Theta Growth Buy-Write strategy is designed to provide income and capital appreciation with less volatility than the stock market.  This strategy offers investors:  

• Conservative equity portfolio:
  The portfolio is composed of large cap stocks.
  
  
• Price appreciation potential:
  The portfolio seeks to achieve price appreciation from the stocks held.
  
  
• The potential for attractive cash flows:
  Combined option premium income and dividend yield targets 8-10% average annual cash flows.
  
  
• Moderation of volatility on equity returns:
  The portfolio utilizes covered calls and is therefore less volatile than an equity-only strategy.