Options Strategies for Any Outcome
Our Guardrail family of model portfolios, powered by Yayati's PLASMA platform, use option collars to limit losses on stocks & bonds while preserving return potential, providing the peace-of-mind to remain invested.
There are 3 prongs to wielding options efficiently at scale – Our funds allow advisor a solution to offer them all
To save on time, advisors rely on pre-packaged products - such as derivative ETFs or structured products - that come with many drawbacks, including complexity, tax inefficiency, lack of customization, cost & illiquidity.
To gain customization, advisors outsource to an asset manager. This solution is not scalable or compatible with model portfolios and has limited control with high minimums.
Many advisors use spreadsheets to trade options because it’s accessible and cheap. The problem with spreadsheets is they are time consuming, manual and not easily scaled across all clients.
Our family of models utilize option strategies around 3 interconnected objectives for each individual
We can construct a downside cap a concentrated position or hedge your overall portfolio (e.g., collars).
We can design an income strategy for you so you can enjoy your retirement and still grow your life savings (e.g., covered call writing).
We can help you design a strategy where you get more exposure to growth stocks with less capital, giving you the opportunity to grow your wealth with risk smart strategies (e.g., target outcomes).
Engineered for retirement income.
- Consistent Income with Loss Limits is an all-weather retirement income solution providing retirees the peace of mind they deserve to spend comfortably while growing their legacy.
- Consistent Income with Loss Limits is designed to support 6% distributions for life while addressing other retiree concerns including yield predictability, ensuring income and legacy growth keeps pace with inflation, drawdown protection, and liquidity.
- Each separate account blends 4 diversified income strategies – dividend paying stocks, high yield bonds, covered call writing on growth stocks, and private corporate credit lending – with an options overlay to create an affordable price floor for each asset.
- Design Objectives:
- 6.0% distributed annually of investment amount in monthly installments of 0.5%
- 9.0%+ annually (3.0%+ annually after distributions)
- 15% cap on individual strategies potential losses over six months
A liquid alternative to the staple wealth portfolio
- A liquid alternative to the staple portfolio blending higher returning equities & bonds with an options overlay to create an affordable price floor for each asset (“guardrails”).
- Design Objectives:
- Targets 10%+ total return, which is higher than 60/40 by generating more relatively more growth and more income.
- Lower risk than 60/40 on the metric that matters – maximum drawdown, not volatility
- Doesn’t rely on negative equity-bond correlation for downside protection, instead explicit floors limit maximum loss to -11% over 6-month periods
- The result is peace of mind to stay invested with option guardrails
A growth alternative to remain invested in stocks
Growth Equity with Loss Limits holds an option calendar collar on a long NASDAQ position to provided exposure to growth stocks with peace of mind. The result is a strategy that delivers:
- Psychology Management: Keeps clients invested during market stress due to the peace-of-mind of having a guaranteed maximum potential loss of 12.5% in 6-month intervals.
- Performance Management (since 2016): ~90% of the long-term return of QQQ with 1/3 less of the risk on the metric that matters to clients – 6-month drawdowns (not volatility)
Meet Our Chief Investment Officer: Jerry Chafkin
Jerry has spent his career creating innovative, multi-asset solutions for individual and institutional investors at wall street firms as well as large and boutique investment organizations.
Our Team