C A P S T E M

Your own derivatives portfolio managed by us.

Our Approach:

Transactional portfolio with predominant focus on derivatives aimed at generating high CAGR. It looks at multiasset portfolio covering Equity, Commodities, Currencies. We use quantitative and statistical methods to spot trades that are fully or partially hedged.

Advantages:

Derivative positions take advantage of the market direction.

Low risk trades which are market/delta neutral improving risk adjusted return.

Trades are identified based on market data and technical factors.

Features

Diversification

Allows oneself to do strategic and tactical allocations across asset classes, even giving exposure to assets that are private and niche. It also gives control over leverage on deployed capital.

Managing Portfolio Risk

Dynamic re-balancing allows one to cap and control the portfolio risk which is absent in traditional portfolios. This enables you to have a portfolio that reflects the risk you are willing to take, which is needed in volatile and ever-changing market conditions.

Multistrat Investment Ideology

One can change allocations and have the freedom to choose between investing styles adapting to changing market conditions.

Strategies

Strategies are built to cater to the needs and risk profile of the client and range from Market Neutral, Smart Beta to Naked (Pure Delta).

Vega Implosion

Markets oscillate between high and low volatility phases, which is measured by VIX and the Option Greek Vega. Selling options for a higher premium in a high Vega environment helps you capture profits as markets stabilize, even if the underlying has moved in price against you.

Delta Neutral

Delta neutral trades are strategies which are unaffected by big moves in the market as the different legs in the strategy hedge and offset other positions. This is done by keeping the overall Delta value of a position is as close to zero as possible always.

Calendar Spreads

These are option trades spread simultaneously between two different months or weeks; entering a long and short position on the same underlying but at different expiries, enables you to trade possible crush/decay without risking delta moves.

Statistical Inference

Prices of underlying move under statistical bounds as all distributions are Gaussian in nature. Any hypothesis which has statistical validity at a certain confidence level can be implemented as a trade given it has good Risk Reward.

Theta Decay

Also known as time decay, these option writing strategies benefit from inactivity in the price of the underlying as we head towards the expiry of a contract.

Make hay while the sun shines is a thing of the past, make hay anywhere, anytime.

Whether you would like to invest or hear any advice, reach out to us. We'd like to hear your message!
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