MOST
EQUITY OPTIONS LOSE VALUE !! With that in mind, shouldn't you
be selling some of them!!
A Hedge
Fund Manager's aim is to exploit the time decay in expiring
options to optimize Hedge spread strategies. This site contains
information for Calendar, Diagonal and Vertical spread options.
These limited risk Hedge spread options, (in my opinion and
I’m sure you agree since you found this site) offer the
greatest risk/reward strategy available today. We have been
trading these options for many years and have designed and tested
a software program that produces a limited selection of Hedge
spreads. Each evening our computer analyzes over 180,000 options
and creates approximately 700,000 Calendar, Diagonal, Vertical
Call & Put spreads and selects a limited few that are optimal
to obtain the next trading day. This program has 65% success
rate if executed correctly using Hedge spreads with a 2.5 or
greater Power Factor. The Power Factor is the deterioration
of the Sell Option to the Buy Option. A Power Factor of 2.5
means that the Sell Option will lose value 2.5 times faster
than the Buy Option, so you are completely covered with a long
and short on the same underlying security, but you make a profit
on the Buy Option retaining it's value relative to the Sell
Option. The dynamics of investing have changed for the small
investor and a balanced Market Neutral Hedged Strategy has now
become economically feasible, given the recent investing climate.
For example: Trading software platforms are now automated; Volume
on the CBOE and other options markets have grown and there is
sufficient liquidity for decent trading bid/ask spreads; Transaction
costs have decreased dramatically and the average trader can
get options at a very competitive price. Each position costs
~ $2000 so a balanced Personal Hedge Fund can easily be put
together for any type of portfolio. The advantage we have over
hedge fund managers is that they can't monitor small positions
like these (2K) so they are left for us to obtain. An average
portfolio of 2.5 power factor positions generates between 8-10%
returns a month or 35-50% more than just standard covered call
writing.
NOVEMBER 17th , 2008 EXAMPLES LISTED BELOW
EMAIL
US FOR OUR CURRENT PORTFOLIO AND A SAMPLE OF OUR REPORTS
