solution : WE TRADE OPTIONS AND BONDS
Options
Offer the ability to implement strategy that posses the attractive characteristic of both bonds and stocks
The structure of opční fund:
Nassim Nicholas Taleb’s bar
Bonds
Bonds ( T-bills) return all costs of options
( up to 80% of assets)
Options costs
Bring premium returns
(20-30% of assets)
The essence of the investment strategy
is the use of Taleb’s bar when forming a portfolio of assets. By buying an option spread (option construction) – we pay a premium. At the same time, we purchase short-term treasury bills or bonds, which give us coupon income equal to or greater than the cost of the premium on the purchased options.
If options give us profit, we will earn on bonds and options. Otherwise, the burned premium for the options will be covered by the profit from the bonds. The period of options spreads opening is from one week to one month.
Options trades are opened by our experienced options traders using analysis of a massive amount of historical data (up to 20 years) with our own software written in python.
The advantage of the strategy
Vs. equities
Higher risk / efficiency
Reduced drawdown
Vs. Bonds
Premium Yield
Redused credit/duration
vs. Alternatives
Persistent return premium
Liquid Cost-effective
OUR STRATEGY APPROACH
SEEK
Long-term focus
earn returns by collecting option premiums over time rather than by capital appreciation or income (credit / duration)
Invest for profits
Don’t reach for higher premiums when markets are greedy and don’t forgo high premiums when markets are fearful.
Balance risk
Balance market risk vs. financial leverage
Diversity exposure
Path dependence can materially affect investor outcomes