Risk Controls

To execute our core strategy of collecting option premiums in high-volume, fundamentally strong equities, we follow defined selection and risk-management parameters.

Every decision we make is focused on minimizing risk while optimizing returns for our partners.

If a put option is sold. and at expiration remains above the low 20-day Hull Moving Average, but below the strike price, we may accept assignment and sell covered calls to enhance returns. If the trend weakens by moving below the low 20-day HMA we will exit the position. This technique allows us to maximize returns and mitigate losses by moving with market direction and avoiding countertrend trades.

We intend to keep 95% of capital invested and reserve 5% in cash to meet potential redemptions. Additionally, we avoid trading equities during their earnings week due to the possibility of extreme price movements. We also stay out of the market entirely during the week of FOMC meetings to sidestep the added volatility which typically occurs during these times.