Why write puts versus just holding the stock? To derisk, Purpose says, PYF has substantially less equity risk than a long only equity portfolio. The reason being that the options have less beta than long-only equities. There's also potentially less drawdowns.
The fund needs some degree of volatility in order to perform, Purpose says. It's hard to generate an attractive premium when volatility is low and returns predictable as few want to pay premiums for put options.
The fund aims for a 7% yield. According to Purpose' website the current yield is 5.2%.