Options have been used in asset management for several decades, but due to current market conditions asset managers' interest has been renewed in this strategy. With bonds in a bear market and an equity market meandering horizontally, these managers are embracing options as a way to generate income while protecting against the downside.

"The timing of the interest in options is due to the lack of income today," said Craig Van Hulzen, Founder and President of Van Hulzen Asset Management. "You can't get income from bonds and dividend yields are only 2%."

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