Financial Options Group employs a market neutral option selling strategy. We strive to generate profits regardless of market direction.
No one truly knows what the market is going to do. We can do all our fundamental research, study Gann lines, and Elliott waves but in the end the market will do just what it wants to do. To be consistently right as to market direction and timing is a talent best left to those with deep pockets and high hopes.
The beauty of our option selling strategy is that we don't have to be right. We can even be a little bit wrong and still make money. It's a lot easier to pick where something WON'T go than to have to be right about where & when. The best example of this comes from James Cordier, in essence it says,
"Suppose there are two meteorologists and a hurricane has been tracked coming across the Atlantic. Meteorologist A is charged with pinpointing exactly where the storm will make landfall and when that will occur. Meteorologist B just has to pick where the storm won't go. And he has the whole eastern seaboard to choose from. Which meteorologist do you want to be? Even if meteorologist A gets paid $1 million when he's right and B only gets $100K, after a few hurricanes the smart money is on B."
That, in effect, is what we do. We just pick where price won't go. We don't hit a home run when we're right but the odds are stacked in our favor and we make slow, steady income, over & over again.
This explanation might be a bit oversimplified but without getting into the specifics of Delta, technical timing indicators, and the fundamental factors we use, this is what we do.
Risk is present in every trade. We constantly monitor our open positions for signs to liquidate and protect capital. Better to live to fight another day, lick our wounds and go on to the next trade. Therefore, our first priority is preservation of capital. We take very seriously the fiduciary responsibility of managing someone else's money. While we strive for great returns we know that first and foremost we have to take care of the clients money.
The regulations of the Commodity Futures Trading Commission ("CFTC") require that prospective clients of a CTA receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client's commodity interest trading and that certain risk factors be highlighted. This document is readily accessible at this site. This brief statement cannot disclose all of the risks. Therefore, you should proceed directly to the disclosure document and study it carefully to determine whether such trading is appropriate for you in light of your financial condition. You are encouraged to access the disclosure document by clicking below. You will not incur any additional charges by accessing the disclosure document. You may also request delivery of a hard copy of the disclosure document, which also will be provided to you at no cost. The CFTC has not passed upon the merits of participating in this trading program nor on the adequacy or accuracy of the disclosure document. We are required to provide other disclosure statements to you before a commodity account may be opened for you.