Oaktower issues high-yield, short-term promissory notes and puts the proceeds to work selling far out-of-the-money 0DTE index-option credit spreads. You hold a note with a stated monthly coupon; the strategy is how we aim to fund it.
The notes bear a stated annual interest rate of 18–24%, paid monthly. This is a contractual coupon, not a guarantee of payment: interest and principal are funded solely by the issuer's 0DTE options trading, which is high-risk and can produce large losses. Payments can be reduced, delayed, or stopped, and you could lose your entire investment. Notes are unsecured securities offered only to verified accredited investors.
Options carry a persistent volatility risk premium — on average, implied volatility is priced above the volatility that actually occurs. We harvest it by selling far out-of-the-money credit spreads on zero-day (0DTE) index options, always buying a further-out wing so the maximum loss on every position is known before we enter. Positions open and expire the same day, so we hold no overnight risk.
Implied volatility tends to exceed realized volatility over time. Selling premium systematically is how we monetize that structural gap.
We always buy a protective wing. Max loss per position is capped and known in advance — no naked short options.
We sell low-delta strikes well away from the money, targeting a high probability that spreads finish worthless — high win-rate by design, not by luck.
0DTE means all remaining premium decays by the close. Positions are opened and closed the same session — no gaps, no weekend or event exposure held overnight.
Across underlyings, expirations, and both put and call sides — so returns don’t hinge on the market going one direction.
Profit-taking, rolling, position sizing, and event avoidance are rules-based — designed to remove discretion and emotion.
You hold a promissory note with a stated 18–24% coupon, paid monthly. The coupon is a contractual rate — but it is funded entirely by the issuer's 0DTE options trading, and it is not a guarantee that you will be paid.
The structural risk to understand: a fixed monthly obligation is being funded by a variable, negatively-skewed strategy. In a losing stretch, the note still owes its coupon, but the trading may not have earned it — so payments can be reduced, delayed, or stopped, and principal can be impaired. Read the full risk disclosures.