Diversified Options Strategy 1X
-Cervino Capital Management’s DIVERSIFIED OPTIONS STRATEGY 1X is an absolute return program designed for sophisticated investors. The objective is to generate consistent monthly returns averaging between 50bps and 250bps for an annualized target of 10% to 15% per year. The maximum peak-to-trough drawdown since inception is (5.93%)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. The variety of positions contributes to the creation of multifaceted and versatile strategies tailored to market conditions and trading outlook. Trading decisions are based on a blended analytical process combining quantitative analysis, fundamental studies, and technical and sentiment indicators. The intent is to identify and arbitrage price discrepancies that reflect under- and over-valuations as well as direction/trend bias, and to produce a replicable trade execution process resulting in positions with statistically high probabilities of positive outcomes. This may not be achieved.