Building a portfolio that targets your specific financial goals while balancing competing interests like generating income, mitigating risk and working towards your unique time frame is a delicate process.
At Iron Gate we believe a core component of that strategy should include some mix of option based methods. Our in-house options and volatility expert, Brett Pattison, manages the IGGA Options Portfolio and you can see the performance of his portfolio since its recent inception at the bottom of this page.
We Need to Discuss Your Options Strategy
If you haven’t had a frank discussion with Brett on how to incorporate options into your overall strategy, consider this an invite to make that happen, and do it ASAP because it will change your mindset towards the markets. You can schedule it at the bottom of this page.
The very phrase “options trading” puts many investors at a bit of unease because they associate options with increased risk, potential large losses and what is perceived as a “black box” because of the complexity most believed inherent in trading options.
Here is the reality: Effectively adding an options strategy to your portfolio may not only reduce the inherent risk of the portfolio, but may also allow you to find income opportunities that are missing from today’s markets. Those two strategies combined, with properly managed risk, may allow you to enhance portfolio returns over time.
Understand How Options Can Augment Your Portfolio’s Performance
There are benefits and risks to incorporating options strategies into your portfolio. The benefits are very substantial. They include:
Generating Income: Unlike what is probably the majority of your asset allocation i.e. equities and bonds, options strategies may actually help with cash flow by generating profits from the selling of options. In a time when income is incredibly valuable this is a crucial tool in your portfolio allocation.
Protect From “Long” Exposure: Although not all of our options strategies specifically target protecting you from long exposure of your assets, many of them such as long puts, covered calls, long vertical spreads and collars can reduce your exposure to wild swings in underlying assets.
Enhance Overall Returns: A lot has been written on the topic in recent years, and many studies conclude overall returns on a portfolio improve when utilizing options strategies. Three studies in particular out of Ibbotson Associates, Asset Consulting Group, and Notre Dame highlight just how substantial the benefits can be.
The risks to options depend largely on the strategy utilized. We manage risk very carefully, but please know that the potential loss of capital above and beyond the investment amount can occur with options.
Our Current Options Portfolio Performance Is Very Respectable
We have just launched our Options Portfolio, since its inception the returns are not just acceptable but extremely compelling. Although no guarantees exist on future performance we believe that our approach dramatically increases the probabilities of strong returns while reducing inherent risk.
It’s time for you to receive a FREE portfolio assessment from Iron Gate by talking with Brett Pattison and incorporating options into your overall strategy.
Give us fifteen minutes of your time to provide you with our proprietary Iron Gate Portfolio Assessment.
You will see first hand how we provide the most circumspect and practical investment approach to our clients. And why our track record is what it is.
We look forward to talking.
The Iron Gate Global Advisors Team
Options Disclosures: Options trading is generally more complex than stock trading and may not be suitable for some investors. Granting options and some other options strategies can result in the loss of more than the original amount invested. Before trading options a person should review the document Characteristics and Risks of Standardized Options, available from your broker or any exchange on which options are traded. Past performance of a security, strategy or index is no guarantee of future results or success.
Information herein has been obtained from sources which we believe to be reliable, but accuracy is not guaranteed. For more information about this portfolio please contact Brett Pattison or Brian Hunsaker at 888-591-0334 or via email at firstname.lastname@example.org or email@example.com. These figures represent past performance and do not guarantee future results. The BXY is used as the broad benchmark for purposes of comparison
Ammusen, Hunsaker & Associates d.b.a as Iron Gate Global Advisors, is an independent money management firm that focuses on building portfolios with stocks, ETFs and options. Options are a piece of the allocation in our growth portfolios. Depending on the market and the clients risk profile it can be anywhere from 5 – 20% allocation to the specific client account. The benchmark CBOE® Buy Write Index (BXY) is a common benchmark for option portfolios. The BXY Index measures the performance of out of the money covered calls sold monthly on the S&P 500 index (SPX). The returns have been adjusted to include the cost of transactions (commissions and other expenses on the purchases and sales of options) and the investment advisory fee. Information herein has been obtained from sources which we believe to be reliable, but accuracy is not guaranteed. For more information about this portfolio please contact Brett Pattison at 888-591-0334 or firstname.lastname@example.org. These figures represent past performance and do not guarantee future results. The BXY is used as the broad benchmark for purposes of comparison. Options are not suitable for all investors as the special risks inherit to options may expose investors to potentially rapid and substantial losses. Some clients have experienced different returns than the above stated returns due to the timing of the investment in their portfolio and timing of them becoming Iron Gate clients.