Financial markets have been experiencing some of their wildest trading days in history this year. Stock and bond prices have been moving in unison—an alarming scenario for investors and their advisors. With increased volatility, long-term investors might benefit from additional exposure to alternative strategies within their portfolio allocations.

The Cboe's new 1-Day Volatility Index, launched on April 24, and was built to measure the expected volatility of the S&P 500 over the next day of trading. VIX1D is a response to a surge in the use of extremely short-dated options.

The current market environment is attractive for a covered call strategy.

In a market environment of low bond yields and record high equity valuations, it’s time to look beyond simple asset-class diversification. A covered call strategy could provide clients with potential for growth, income and downside protection.