Cervino Capital Management LLC

Diversified Options Strategy 2X

Minimum Investment
$ 25,000
Management Fee 2.00%
Performance Fee 20.00%


Cervino Capital Management’s DIVERSIFIED OPTIONS STRATEGY 2X is an absolute return program which involves the same trading strategies as the Diversified Options Strategy 1X program but will trade twice as many contracts as the 1X program for the same nominal account size. Accordingly, the additional leverage of the 2X program is expected to result in increased account volatility, and therefore an increased potential for higher returns as well as an increased potential for larger drawdowns. The objective is to generate consistent monthly returns averaging between 100bps and 500bps for an annualized target of 20% to 30% per year. The maximum peak-to-trough drawdown since inception is (10.24%) and began in September 2008. The managed futures program trades options on a diversified portfolio of financial futures contracts including equity indices, fixed income, currencies, and precious metals. Opportunity and risk exposure is further diversified through use of different types of complex option positions such as debit spreads, credit spreads, condors, ratio spreads, strangles and calendar spreads as well as naked puts and calls. There are varying risks associated with these strategies, including the risk of unlimited loss associated with writing naked calls or puts.