The goal of the strategy is to provide an investment vehicle which experiences consistent positive gains regardless of market movement or direction. The manager seeks to achieve this goal through the use of S&P 500 index options with the intent of retaining option premiums and allowing those options to expire worthless on a monthly basis.
PHI employs an alternative investment strategy that aims to generate income on a range bound broad-based index through the time decay of option premiums by selling front month out-of-the-money put option spreads.
PHI principals and technology systems monitor option pricing as well as the market as a whole.
Trades are made using account cash value. Some cash may be sidelined for contingencies.
Typically the options are held to expiration so the full premium value is realized.
Capital is put to work immediately to sell more spreads for the next cycle.
Learn what options are and how they are used
Discover a study showing how the use of options decreases portfolio volatility