Lately I have realized how important having some yield in a portfolio to offset losses. With a little money management, the yield can really offset risk, for example, if your portfolio earns 1K a month in yield, and you use that money to purchase OTM butterflies, your risk is essentially only what you have in debt instruments or bonds, which is conservative? What are your thoughts?
The second part of this post is regarding obtaining the capital required for that kind of yield (~.5 percent a month which let's say is around 200K in capital). Are there traders willing to share how they might have procured that kind of capital, through what means, and was it through personal credit or as a business entity?
To yield 1k a month off 200k, you need 6% yield pa. Which conservative bonds have you found which yields this?