Dynamic Option Strategy

Managed by Elite Wealth Management

0.7% Last 30 days 3.7% Last 90 days 13.3% Last 365 days 2.23 Sharpe Ratio -2.5% Max Drawdown

Dynamic Option Strategy

Managed by Elite Wealth Management

0.7% Last 30 days 3.7% Last 90 days 13.3% Last 365 days 2.23 Sharpe Ratio -2.54 Max Drawdown
Risk score
Strategy Options
AUM fee 1.25%
Requirements
• Investment minimum: $140,000
• Options trading permissions
• Portfolio margin account
or Sign up to invest
Dynamic Option Strategy targets capital appreciation along with income generation by strategically selling options on the broad market index and large cap stocks.  We seek to generate positive portfolio cash flow through careful risk management in all market environments.

Research

We use a series of screeners to scan the universe of options chains and run our analysis of the theoretical probabilities across the market to test the various options strike prices being targeted.  This is complemented by further fundamental analysis utilizing a wide range of sources, including company filings, analyst reports, financial publications and data aggregators.

Approach

The goal is to generate consistent cash flow by selling options regardless of market volatility.  We conduct rigorous macro, fundamental and technical analyses in order to gauge optimal strike price selection for the options contracts sold in the portfolio.  Since all options have an expiration, new exposure is staggered each week to better mitigate against market volatility.

Allocation discipline

The portfolio typically has between 10 – 30 total positions with greater than 90% exposure focused in options on the broad market and less than 10% in options on individual stocks.

Sell discipline

Positions are opened through the selling of options contracts.  All positions are either closed by: 1) strategically rolling a position by buying back contracts and selling new contracts at different expirations/strike price levels during a volatile market, or 2) expiration of the contracts.  The strategy seeks to maintain a consistent buffer between the underlying index and the options strike price and will take action to maintain the buffer through a moving market or if the underlying starts testing the respective options position.

Exceptions

None.

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. This information was calculated on November 17, 2017.

Daily returns
Performance
U.S. Aggregate Bond ETF
S&P 500
Manager (net of fees )
Last 30 days 0.7% 0.7% -0.2%
Last 90 days 3.7% 6.3% -0.6%
Last 365 Days 13.3% 17.9% 0.5%
Since inception (Annualized) 16.1% 9.2% 0.1%
2017 (YTD) 12.0% 15.2% 1.2%
2016 19.2% 9.5% 0.0%
Risk metrics (last 365 days)
U.S. Aggregate Bond ETF
S&P 500
Manager (net of fees )
Volatility 5.4% 6.8% 3.1%
Sharpe Ratio 2.23 2.44 -0.24
Sortino Ratio 1.93 3.26 -0.36
Maximum Drawdown -2.5% -2.8% -1.7%
Value-at-risk (95%, 1 week) -1.3% -1.6% -0.7%
Additional metrics (last 365 days)
vs.U.S. Aggregate Bond ETF
vs. S&P 500
Information Ratio -0.8% 2.0%
Alpha 5.14 12.76
Beta 0.45 -0.16
R-Squared 0.3% 0.0%
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About Elite Wealth Management

Elite Wealth Management is a registered investment adviser headquartered in Kirkland, WA. Our mission at Elite Wealth Management is twofold: to provide our clients with financial guidance based on their values and priorities, and to provide them the peace of mind and confidence to pursue their financial future – no matter what the markets or life may bring. Our capabilities are fully aligned to providing the best possible client service and communication along the way. We have extensive experience managing the wealth of high net worth individuals and institutions, and are committed to delivering insightful, informed advice to help our clients achieve their financial goals.

Important Information

  1. Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.  
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-IB Asset Management performance information may include performance of non-IB Asset Management client accounts. Performance of the Portfolio Manager's account is calculated by IB Asset Management on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions. Manager returns include trades and positions that fail IB Asset Management's trading rules, as a result, actual client returns will differ. IB Asset Management advisory fees are simulated and applied retroactively to present the portfolio return "net-of-fees".
  3. None of the performance information displayed on this page is based on the actual performance of any IB Asset Management client account investing in this portfolio. The performance in an IB Asset Management client account invested in this portfolio may differ (i.e., be lower or higher) from the Portfolio Manager’s account performance based on any trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their IB Asset Management account and reviewing their customized dashboard.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by IB Asset Management, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither IB Asset Management nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns displayed have been calculated by IB Asset Management using daily benchmark prices and do not include dividend income. More information here. For certain portfolios IB Asset Management uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of IB Asset Management has been provided by the Portfolio Manager. IB Asset Management makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of IB Asset Management. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by IB Asset Management, and are intended to serve as a general guide.
  8. Not all transactions listed will appear in accounts due to IB Asset Management's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  9. This portfolio was launched on IB Asset Management on July 23, 2015.
  10. This portfolio contains options. Options trading involves a high degree of risk, is highly speculative, and is not suitable for all investors. You should only select a portfolio with options trading if you are comfortable with the level of risk involved in trading options.
  11. The Portfolio Manager could use short selling to manage this portfolio. Short selling is more complex than simply owning securities, involves a high degree of risk, is highly speculative, and is not suitable for all investors. The risk of loss associated with short selling is virtually unlimited. Short selling may also involve additional expenses and risks, including hard-to-borrow stock charges and buy-in risk. You should only select a portfolio using short selling if you are comfortable with the level of risk involved in short selling.
  12. The Portfolio Manager could use borrowed funds or leverage to fund investments in this portfolio. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value. Leverage involves a high degree of risk, is highly speculative, and is not suitable for all investors. Leverage increases both the amount you may lose and the amount you may make in a portfolio, leading to higher returns in the case of favorable market movements but also larger losses under adverse market conditions. You may also incur additional expenses associated with borrowing funds. You should only select a portfolio using leverage if you are comfortable with the level of risk involved in using leverage.