Our Strategy
Long Theta
Our bread-and-butter income is from long theta. Since options prices and volatility are corelated, we carefully and systematically adjust our risk based on the market environment. We trade Options on Futures due to their large liquid markets, along with the added benefit of the 1256 Contract tax advantage.
Delta Nuetral
We are not distracted by pretending we know where the market is going next. Our main strategy is unbiased to direction. We hold both long and short Options positions ranging in duration from one month, to over a year. We have a long term outlook on options and use the underlying to hedge off risk as markets move.
Bullish Exposure
Although we are delta nuetral, we also hold long term bullish positions in the markets that we are trading. This long exposure is defined and is financed through the collection of dividends as the positions mature.