Investment Strategies
We Invest In Spx Index Options By Layering Into Large Income-Generating Option Structures.
Our strategy is to leverage the power of the S&P 500 index options market to create large-scale option structures that generate consistent income for our investors. We trade on the SPX index because it is one of the most liquid and diversified indexes in the world. We use a layered approach to enter and exit these structures, taking advantage of market fluctuations and volatility. Our option structures are designed to be delta-neutral and theta-positive, meaning that they are not affected by the direction of the market, and benefit from time decay. This approach yields a strong track record of delivering superior returns with minimal drawdowns.
Selling Options
We generate consistent and uncorrelated returns by selling options and collecting premiums.
Manage Positions
We are resilient to market movements by managing our positions by balancing our deltas (the sensitivity of an option’s value to changes in the underlying security).
Risk Management
We mitigate risk by balancing our positions, diversifying our structures across time and expiration cycles, and getting additional hedge protection.
Albert Einstein — “Everything should be made as simple as possible, but not simpler”
What Makes Us Different?
How are we different than others funds?
The investment business is a difficult one.
Our approach eliminates many areas where many firms fail.
We increase our expectancy by relying on statistical edges that can be predicted.
For example when selling options they decay over time.
This is opposed to what other funds like picking the “best” stocks or the “best” asset class.
Our fund does not need to:
Choose Market Direction
Rebalance Portfolio Asset Classes
Choose Asset Classes
Research Different Stocks
Timing Entering And Exiting Stocks
Build Complex Algorithms
Pairs Moving Against Or In The Same Direction
Selling Options
Our strategy is to generate income by selling options on the S&P 500 index, the most liquid and diversified index in the world. We are not trading individual stocks or market direction, but two key factors that affect option prices: time decay and volatility. Time decay, or theta, is the rate at which an option loses value as it approaches expiration. Volatility, or vega, is the measure of how much the price of an option changes due to changes in the implied volatility of the underlying asset. By selling options, we collect premiums upfront and benefit from theta and vega decay over time. We use sophisticated risk management techniques to hedge our positions and protect our capital.
Manage Positions
We use a delta-neutral strategy to manage our option positions on the S&P 500 index. Delta is the sensitivity of an option’s value to changes in the price of the underlying asset. By balancing our deltas, we ensure that our positions are not affected by the market movements, and we can keep collecting our time decay income. We adjust our deltas periodically to maintain our neutrality and hedge our risks.
Risk Management
We mitigate risk by diversifying and scaling our option structures. We do not enter our structures all at once, but gradually over time and across expiration cycles. This way, we limit our exposure to major market moves and optimize our entry and exit points. We also diversify our structures by using different strike prices and expiration dates, which reduces the impact of volatility and skew on our positions.
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