Investment Strategy

Our signature investment product is called the Index Premium Program. This strategy is designed to provide consistent income and capital appreciation while managing the associated risk. We are able to accomplish this by utilizing a dual instrument approach which includes the index futures contracts in addition to options on futures.  We’ve developed the program to provide an opportunity to profit whether the markets move up, down or sideways. 

The options part of our system involves the SELLING (also called writing) of options credit spreads on the major financial indexes. Why do we sell options instead of buying them? The answer is simple: research suggests that over 80% of purchased options expire worthless. By focusing on selling options we can take advantage of time decay which creates a profit opportunity as the options approach expiration.  Credit spreads utilize a short option position hedged with a long option which allows us to control the risk on each and every trade.

In addition to options trading, we actively utilize the electronic futures contracts of the major stock indexes (called the e-minis). We use this instrument to take advantage of short term trading opportunities in the futures market. These opportunities give us the ability to increase our client returns and manage risk.  Our primary focus for both futures and options trades will be the S&P 500 contract.  However, at times we may trade the contracts of other stock indexes as needed.

This combination of actively trading the futures contract along with consistently collecting premium from credit spreads is unique in the investment world.  Advanced market analysis and proprietary technical indicators are utilized to give us a decided edge in making trading decisions.