01
Entry
Cash-secured puts written at strikes we would willingly pay to own the
underlying. If assigned, we take delivery and hold. If not, we keep the
premium. Every entry is pre-priced.
Strategy
Derivative Income
A systematic options income strategy. Cash-secured puts for considered entries. Covered calls for premium on positions we are content to hold. Executed on a concentrated portfolio of high-conviction U.S. equities.
Philosophy
Yield without forecasting
We do not predict direction. We price optionality the market overpays for, on companies we already want to own.
Most strategies that generate yield do so by taking duration risk, credit risk, or directional risk. Derivative income takes a different path. The premium an options buyer pays is, on average, richer than the realized volatility of the underlying. Selling that premium systematically — against shares we are prepared to hold — is what produces the income stream.
The strategy is not a forecast. It is a discipline: a pre-committed pricing framework for how we enter positions, how long we hold, and the terms on which we exit. Returns come from consistent execution of that framework across market regimes — not from a view about where the index is headed next quarter.
Mechanics
How the strategy works
02
Exposure
A concentrated portfolio of high-conviction U.S. equities — primarily
companies positioned for secular growth in artificial intelligence and the
infrastructure that supports it. Conviction in the underlying is a
prerequisite for writing options against it.
03
Exit
Covered calls written at strikes we would willingly sell at. Premium
accrues on the position either way. When shares are called away, capital
redeploys into the next cycle of cash-secured puts.
Approach
A discipline, not a bet
This approach — sometimes referred to colloquially as an "options wheel" — is a methodical sequence of cash-secured puts and covered calls executed on a concentrated book. What distinguishes professional execution from the retail interpretation is position sizing, underlying selection, strike discipline, and the willingness to hold assigned equity through volatility rather than chase the next trade.
AGT Equities executes the strategy on behalf of clients through separately managed accounts. The firm does not take custody of assets. Clients retain direct ownership; AGT maintains trading authority only.
Fit
Who this strategy is for
Well-suited for
- High-net-worth investors seeking yield diversification outside fixed income
- Portfolios with holding horizons of two years or longer
- Investors comfortable with concentrated equity positioning
- Sophisticated self-directed investors seeking professional execution of the methodology
Not well-suited for
- Capital with liquidity needs under two years
- Investors requiring downside hedging or structured protection
- Mandates that penalize short-term volatility or interim drawdown
- Investors uncomfortable with single-stock concentration
- Performance-chasing allocations that rotate on quarterly results
Operations
How the account is structured
Client assets are held in a separately managed account at Interactive Brokers. The client is the account owner. AGT Equities acts as investment adviser with trading authority — never custody. Reporting, tax documents, and real-time account visibility flow directly from the custodian to the client.
AGenTech Equities, LLC (DBA AGT Equities) is a registered investment adviser in the State of California. Yash Patil, CFA serves as Founder, Portfolio Manager, and Chief Compliance Officer.
Disclosures
Risk factors
Investments involve risk and, unless otherwise stated, are not guaranteed. Past performance is not indicative of future performance.
The strategy marketed as "Derivative Income" (sometimes referred to colloquially as an "options wheel") involves the systematic use of options, which are speculative and involve a high degree of risk. Options may expire worthless, may be exercised or assigned at unfavorable prices, and are subject to early exercise risk and liquidity constraints in certain market conditions.
The strategy utilizes a concentrated portfolio, which may result in greater volatility than a diversified portfolio. Concentration in a small number of individual equities — and in a single sector theme — materially increases the impact of adverse events affecting any single holding.
Covered call writing limits upside participation in the underlying equity during strong price advances. Cash-secured put writing obligates the account to purchase the underlying at the strike price regardless of the prevailing market price at expiration. Tax treatment of option premium, assignment, and exercise varies by jurisdiction and holding period.
This strategy is not suitable for all investors. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.
The information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.