Reduce The Risk Of Other Investments

Options writing and option spreads can play a critical role in any portfolio looking to reduce risk. Even if you only commit a small amount of capital to our strategy, options can smooth out your returns and reduce the volatility of your overall portfolio. For example, let’s take any three-month period where the NASDAQ lost 3% of its value. If you had an investment portfolio and were long the NASDAQ – through the QQQQ or any other ETF – you would have been fully exposed to that downside risk. But if you take that same portfolio and add our option writing strategy, you could have still made money over that time period by profiting from the slight decline in the indexes value.