Oak Investment Group : Blue Star

Summary

Oak Investment Group’s Bluestar program trades primarily in one of the “true” tangible & non-correlated markets, Live Cattle Futures and Options on the CME. Blue Star builds on the principles of our Ag Options Program, which utilizes a short options strangle strategy, by incorporating additional risk management strategies, namely, an Options strategy called a Condor. The Blue Star Program of the Advisor employs a fundamental analysis of the Cattle market to determine a range that we believe the market will remain in through a 60 day period. Our strategy analyzes and anticipates the final two months of the cycle of a cow from birth to the slaughter house of approximately 18 months. Primarily, our conclusion is derived from simple supply vs. demand. In essence, once the trader has determined the range; we sell calls above the market and puts below the market. In addition, we will buy both “insurance” calls above the calls we sold and puts below the puts we sold, enabling the Blue Star program to have a pre-defined limited risk component. Typically, a client can expect a maximum of 25 to 35% total risk per option cycle. The Advisor believes these additional risk management strategies will provide clients with lower volatility and a smoother overall equity curve.

Investment Strategy

Oak Investment Group’s Bluestar program trades primarily in one of the “true” tangible & non-correlated markets, Live Cattle Futures and Options on the CME. Blue Star builds on the principles of our Ag Options Program, which utilizes a short options strangle strategy, by incorporating additional risk management strategies, namely, an Options strategy called a Condor. The Blue Star Program of the Advisor employs a fundamental analysis of the Cattle market to determine a range that we believe the market will remain in through a 60 day period. Our strategy analyzes and anticipates the final two months of the cycle of a cow from birth to the slaughter house of approximately 18 months. Primarily, our conclusion is derived from simple supply vs. demand. In essence, once the trader has determined the range; we sell calls above the market and puts below the market. In addition, we will buy both “insurance” calls above the calls we sold and puts below the puts we sold, enabling the Blue Star program to have a pre-defined limited risk component. Typically, a client can expect a maximum of 25 to 35% total risk per option cycle. The Advisor believes these additional risk management strategies will provide clients with lower volatility and a smoother overall equity curve.

Risk Management

Oak Investment Group’s Bluestar program trades primarily in one of the “true” tangible & non-correlated markets, Live Cattle Futures and Options on the CME. Blue Star builds on the principles of our Ag Options Program, which utilizes a short options strangle strategy, by incorporating additional risk management strategies, namely, an Options strategy called a Condor. The Blue Star Program of the Advisor employs a fundamental analysis of the Cattle market to determine a range that we believe the market will remain in through a 60 day period. Our strategy analyzes and anticipates the final two months of the cycle of a cow from birth to the slaughter house of approximately 18 months. Primarily, our conclusion is derived from simple supply vs. demand. In essence, once the trader has determined the range; we sell calls above the market and puts below the market. In addition, we will buy both “insurance” calls above the calls we sold and puts below the puts we sold, enabling the Blue Star program to have a pre-defined limited risk component. Typically, a client can expect a maximum of 25 to 35% total risk per option cycle. The Advisor believes these additional risk management strategies will provide clients with lower volatility and a smoother overall equity curve.