LOWS(Levered Options Writing Strategy)

Managed by Freedom Capital Advisors

-2.2% Last 30 days -0.4% Last 90 days 3.6% Last 365 days 0.18 Sharpe Ratio -7.3% Max Drawdown

LOWS(Levered Options Writing Strategy)

Managed by Freedom Capital Advisors

-2.2% Last 30 days -0.4% Last 90 days 3.6% Last 365 days 0.18 Sharpe Ratio -7.33 Max Drawdown
Risk score
Strategy Options
AUM fee 1.25%
• Investment minimum: $30,000
• Options trading permissions
• Margin account
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We take a value approach to investing and try not to overpay for anything. Our discipline is buying good large cap companies at reasonable valuations and selling puts underneath as a means to initiate positions and create income. Companies are scrutinized closely and we look at earnings, cash flow, debt, and market cap as well as many other metrics. Often we initiate positions in companies that we have followed for many years and have invested in many times in the past.


Most positions we initiate are in stocks and companies we are familiar with and have read through quarterly earnings reports(10-Q) and annual reports(10-K’s) as well as current news.


We typically are looking at large, dominant Fortune 500 type companies who have attractive valuations. The LOWS strategy involves selling out-of-the-money puts on companies we would like to own and that involves shorter-term options as well as long-term options. If put the stock, often we will sell covered calls to reduce our risk further.

Allocation discipline

The portfolio consists primarily of short options positions (naked puts) and long stocks and covered options positions. Careful consideration is given to not overweight in any one stock or sector. There are usually between 10 to 30 companies in the portfolio at any one time and typically a handful of options and strike prices on any one position, typically puts and covered calls. Our goal is to maximize returns using leverage and employ a “walk before we run” approach.

Sell discipline

We would sell a position if the company’s outlook and fundamentals deteriorated and we felt like it would take too long to recover. Often we will “roll” a position if necessary to lower our cost and reduce risk along with selling an “in the money” covered call.

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 July 13, 2018.

Daily returns
S&P 500 ETF
Manager (net of fees )
Last 30 days -2.2% 1.0%
Last 90 days -0.4% 5.9%
Last 365 Days 3.6% 16.5%
Since inception (Annualized) 12.5% 14.7%
2018 (YTD) 1.2% 5.7%
2017 5.4% 21.7%
2016 25.9% 12.0%
Risk metrics (last 365 days)
S&P 500 ETF
Manager (net of fees )
Volatility 9.3% 12.5%
Sharpe Ratio 0.18 1.16
Sortino Ratio 0.28 1.24
Maximum Drawdown -7.3% -10.1%
Value-at-risk (95%, 1 week) -2.1% -2.9%
Additional metrics (last 365 days)
vs. S&P 500 ETF
Information Ratio -1.0%
Alpha 0.57
Beta 0.21
R-Squared 0.1%
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About Freedom Capital Advisors

Freedom Capital Advisors is a Registered Investment Adviser and currently manages over $30 million in assets. We specialize in stocks, bonds and options and we engage in a lot of premium selling in managing our strategies, whether it is covered call writing or naked put selling. Ron McCoy has worked in the financial markets for over 25 years and has seen many of boom times as well as the bust times. His focus is on managing risk and he takes a value approach to investing clients’ money. He received a Bachelor of Science in business degree from Florida State University in 1986. Prior to founding and becoming a Registered Investment Adviser Representative for Freedom Capital Advisors, Ron held a series 7, 24, and 65 and held various management positions in the brokerage business.

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 adjusted close prices and 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 19, 2016. Returns history prior to launch is derived from account position valuation and cash flow data at Interactive Brokers. IB Asset Management has not reviewed this performance data but has received manager certification that it adheres to the current strategy.
  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.