Risk Management

Risk Management Techniques utilized

One for one protective puts and calls purchased in an effort to define risk and maximize portfolio margining.


Long VIX options may be utilized to hedge catastrophic market declines.


Collateral usage per contract is adjusted to permit trading flexibility and control volatility.


The strike price where options are sold is adjusted for each trade based upon market volatility at the time each trade is placed.


Repurchase or roll down puts, or repurchase and roll up calls, if the probability of success declines to 66.6%.


Position size is managed to control volatility.


 

 

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