Diamond Capital Management

Options Program

Minimum Investment
Management Fee 1.00%
Performance Fee 20.00%


-Diamond Capital Management Option Trading Program uses an approach to trading that relies heavily on selling or "writing" options on stock index futures. Diamond may also, from time to time, purchase options and may employ the use of hedge strategies such as option spreads, straddles, strangles or may purchase or sell futures to offset an open option position. The implementation of this trading program depends on both technical and fundamental considerations. The strategy typically utilizes an average of two to six week trade durations within given price levels while relying on charting techniques to identify trading ranges from one month to a year as well as seasonal and historical tendencies. Support and resistance levels for various time durations are also evaluated to assist in the entry and exit of positions. The profitability of a trading strategy consisting of selling ("writing") options on an index depends upon the subsequent price movement of the index. It is the intention of Diamond to write mainly "out-of-the-money" puts and calls while seeking to sell into volatility. Thus, if the index remains within approximately 10% of its current price and the option remains "out-of-the-money" until expiration, the puts and/or calls will be profitable. It is Diamond's goal to produce consistent positive returns. the trading strategies have pre-defined profit goals and risk exposure. Stop loss measures are utilized as well as the use of derivative hedging techniques to quantify market exposure. Bear in mind that past performance is not necessarily indicative of future results. The risk of substantial loss exists in writing options.