was a guy named Madoff that promised something similar. A "safe" 8% real return with low volatility is not possible, unfortunately. ...But if u do find it please let us know.
Play around with this, perhaps a such a product would meet his needs. http://www.brkdirect.com/spia/EZquote.asp
Sell otm puts on low-betas and use zero leverage. BLK has a buy-write fund, but you should do this yourself in shares. Pick a diverse group; many sectors, best in class. 100 shares notional exposure per ticker (1 put), no more than 4 tickers per sector. Go one strike otm and do not adjust. Buy some upside calls in VIX or bull vertical as a hedge on vol, or buy an atm index put for gamma.
Not IMO, it's what adds alpha to a dispersion book. I would stick to shares. Dividends are priced into the equation, so no advantage there. I have done this strategy for a <1 beta portfolio and it is doing very well. ~18%/year over almost 4 years.
wow atticus i didnt know you do this stuff as well. Curious, what do you do if the underlying went itm? Do you just take assignment then sell otm covered calls 1 strike out against it or take the loss and close before expiration. thanks