Our approach is to implement Tried and Tested strategies with proven results
In order to have simple and easy to implement strategy, simple options spreads like debit spreads, ratio spreads or credit spreads are used to manage each position. Key features include -
Lower Upfront Capital : By owning position-sized and limited timeframe, precisely selected call spreads, the effective cost of ownership is usually 20% of the original position. Rest of the cash position is always available for unanticipated opportunities.
Defined, Limited Risk : The maximum loss is restricted to the net premium paid to enter the trade, helping us to limit losses on the downside.
Higher Probability of Success : By requiring a smaller move to reach maximum profit compared to a regular long stock/option, the probability of profit is often increased.
A debit spread helps a portfolio by limiting maximum risk to the net premium paid while enabling profit from moderate price movements. This strategy reduces capital outlay and the impact of time decay compared to buying options outright, offering a higher potential return on capital for directional bets.
Similar to Debit spreads, various spread strategies always keep the total amount at risk to maximum 35% and hold it for durations when a proper trend is intact. Since total max risk exposure is always capped - it provides strong actionability in case of downturns. Incrementally adjusted spreads over longer periods help have periodic gains that accumulate over time.
A debit spread is a defined-risk options strategy involving the purchase of a higher-premium option and the sale of a lower-premium option, resulting in a net cost (debit) to enter. It reduces the cost and time decay (theta) impact of buying regular options, with profits capped at the difference between strike prices minus net debit.
Diversifying a stock portfolio reduces risk by spreading investments across different asset classes, industries, and geographies, ensuring that poor performance in one area doesn't cripple total returns. As a methodology, we utilize Sector Diversification where we spread investments across different sectors (e.g., Technology, Healthcare, Energy, Financials) so a downturn in one sector doesn't devastate the portfolio.
We understand the importance always approaching each work point integrally and believe. his motionless preference.
Read MoreWe understand the importance always approaching each work point integrally and believe. his motionless preference.
Read MoreWe understand the importance always approaching each work point integrally and believe. his motionless preference.
Read More