Safeguards

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

If a put option is sold and then assigned, so long as the stock remains above the 50-day Hull Moving Average and below the strike price, we sell covered calls to enhance returns. If the trend weakens by moving below the HMA we will exit the position. This technique maximizes returns by moving with market direction and minimizes losses by avoiding countertrend trades.

We aim to keep 90% of capital invested and reserve 10% 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.