Sell the Wall — RSI-based options overlay for Fund A

TL;DR: Sell the Wall is Fund A's mechanical RSI-based options overlay. Covered calls sold against the Alpha Bets 27 names when overbought (RSI > 60-70 + IV rank > 70 + upper Bollinger); cash-secured puts sold against the same universe when oversold (RSI < 30-40 + VIX > 30 + put/call > 1.2). All premium reinvested via DRIP-ON, assigned shares auto-repurchased. This is a share-accumulation engine, not an income fund — every framing of Sell the Wall as an income strategy is a misframing.

Status as of 2026-05-10: see body.

Relations

Aloha Flywheel — Sell the Wall is the execution layer of the flywheel.
DRIP-ON — every Sell the Wall premium reinvests via DRIP-ON; assigned shares get repurchased.
Alpha Bets 27 — the only universe Sell the Wall trades; the strategy never expands beyond the 27.
T-Bill Float Engine — holds the CSP collateral; one of three jobs of the float.
DNSA Engine — the signal-discipline framework; Sell the Wall triggers are the overbought half.
Iron Rules — the one-way-ratchet, reserve-floor, and concentration-cap rules Sell the Wall serves.
Benchmarks — BXM (CBOE BuyWrite) is the strategy peer benchmark Sell the Wall + DRIP-ON exists to beat net of fees.
Sell the Wall — Decision Flow — Decision flow diagram

Why this exists

Markets oscillate between fear (oversold) and greed (overbought) around fundamentally sound businesses. Sell the Wall is Fund A's mechanical discipline for selling volatility at technical extremes — covered calls when the Alpha Bets 27 names are overbought, cash-secured puts when oversold — collecting consistent premium income while maintaining (and growing) exposure to the underlying compounders. All premium income flows back into the same names per DRIP-ON, creating the share-accumulation flywheel.

This is the execution layer of the Aloha Flywheel. The strategy works only because the underlying universe (Alpha Bets 27) is pre-filtered for indispensability and free-cash-flow growth — selling volatility on a junk universe is a failed strategy by any measure.

Mechanical entry triggers — RSI-based

The trigger table is intentionally non-proprietary. The edge is execution discipline, not signal sophistication. Per DNSA Engine: the rules are simple, public, and defensible to LPs.

Overbought side — sell covered calls

Market condition	RSI level	Action	Strike selection	Duration	Position size
Extreme overbought	RSI > 70 weekly	Sell covered calls	3–5% OTM	6–8 weeks	50% of position
Moderate overbought	RSI 60–70	Sell covered calls	2–3% OTM	6–8 weeks	25–30% of position
Neutral	RSI 40–60	No action / monitor	—	—	—

Additional confirmations (any one elevates the trigger): IV rank > 70th percentile (52-week), price at upper Bollinger Band on monthly chart.

Oversold side — sell cash-secured puts

Market condition	RSI level	Action	Strike selection	Duration	Position size
Extreme oversold	RSI < 30 weekly	Sell CSPs	3–5% OTM (below market)	6–8 weeks	sized to T-Bill collateral
Moderate oversold	RSI 30–40	Sell CSPs	2–3% OTM	6–8 weeks	sized to T-Bill collateral

Additional confirmations (any one elevates the trigger): VIX > 30, put/call ratio > 1.2, credit spreads widening.

CSP collateral is sourced from the T-Bill Float Engine — cash-secured puts are the second of the float's three jobs.

Why "Sell the Wall"

The metaphor is the visual on a price chart: covered calls capping a runaway price (the wall above), CSPs accumulating shares as the price falls into a buying zone (the wall below). The fund "sells" that wall — collects premium for taking the constrained side of each end of the range.

The metaphor is also disciplinary: walls don't move based on our desires. We don't sell calls because we want to. We sell calls because the chart and the IV regime tell us we should. RSI > 70 is the wall; we sell against it.

Iron Rule alignment

Sell the Wall is the active expression of three Iron Rules:

Iron Rule 1 (one-way ratchet on share count). Premium reinvests via DRIP-ON. Assigned shares get bought back. Share count only goes up.
Iron Rule 2 (reserve floor). T-Bill Float Engine holds the CSP collateral. The 22% reserve floor is never breached for premium-generation purposes.
Iron Rule 3 (concentration cap). Sell the Wall is run only on names already in Alpha Bets 27. The strategy doesn't expand the universe.

Drawback of the strategy

Honest accounting of where Sell the Wall costs the fund:

Capped upside in fast bull tapes. When a name rips through the call strike, the call gets assigned and the auto-repurchase rule (DRIP-ON) buys back at a higher price than the sale. Net effect: same share count, less cash, missed the ride. This is the explicit cost of the strategy and LPs should understand it before subscribing.
Forced buying in falling markets. CSPs oblige the fund to buy at the strike when assigned — by design, but painful when the market is mid-cascade. The point is that we want to be buying our universe at oversold levels, but the experience of buying down a 25% drawdown is not pleasant.
Slippage on roll-and-repurchase. Between assignment and repurchase, the share count is briefly lower. The discipline of executing the buyback at the next available open is what protects Iron Rule 1; sloppy execution breaks the one-way ratchet.

Distinction from Aloha Income (and why the framing matters)

Sell the Wall and the older "Aloha Income" framing are easy to confuse — both involve selling options against the Alpha Bets 27 names. The distinction is the purpose:

Aloha Income (deprecated framing): generate income for distribution to LPs.
Sell the Wall (current framing): generate premium that reinvests into more shares, ratcheting ownership.

The fund is not an income fund. It is a share-accumulation engine whose share count goes up monotonically, whose premium gets recycled, and whose covered calls are mechanical, not opinion-driven. Calling Sell the Wall an "income strategy" to LPs is a non-negotiable misframing — if an LP wants quarterly distributions, this is not the fund for them.

Counterarguments worth arguing with

"Selling calls on long-term compounders is leaving alpha on the table." Response: yes, on a per-position basis, in fast bull tapes. The premium income across the universe and the auto-repurchase discipline mean Fund A's share count compounds faster than a long-only sleeve, even when individual call assignments cost individual upside. The benchmark to beat is BXM (CBOE BuyWrite), and Sell the Wall + DRIP-ON exists precisely to beat it net of fees — see Benchmarks.
"RSI is a noisy indicator." Response: yes. The strategy is not "RSI > 70 always sells." It's "RSI > 70 + IV rank > 70 + Bollinger upper" — a confluence. Single-indicator triggers are forbidden by DNSA Engine discipline.
"What about times when the universe sells off and there's no premium to collect?" Response: in those tapes, CSPs become the primary tool — accumulating cheap shares with collateral premium. The strategy has both sides of the wall by design.

What this is not

Not running. As of 2026-05-10, no CSP/STW overlay is live. Fund A is pre-launch.
Not a proprietary signal system. The triggers are public; LPs and competitors can read them. The edge is execution discipline and the one-way-ratchet reinvestment — not the signals themselves.
Not a substitute for the long sleeve. Sell the Wall is the volatility-overlay layer on top of the long-only Alpha Bets 27 sleeve, not the entire strategy.

Sources

Internal Hussh source note - DNSA Engine entry/exit signals (RSI <30 weekly, VIX >30, put/call >1.2 for oversold; IV rank >70th, RSI >65 weekly, upper Bollinger monthly for overbought).
Aloha Flywheel, DRIP-ON, DNSA Engine, T-Bill Float Engine - dependent concept pages.
Internal baseline snapshot note - 2026-05-10 strategy baseline.