There is no risk management here, it is just selling puts en masse searching for extra returns after the market has already moved significantly and vols are relatively low. The extremely low dividend yields and fixed income returns makes people chase returns in what as advertised as relatively safe strategies. That is a good sign of losses to come.
The better play would be to ride the upward wave these buy and hold firms ride on and partially hedge with puts or various VIX strategies. I think selling puts in a buy and hold portfolio adds more uneeded risk when you are just a long only fund like these funds are.
