What is the Defined Risk Strategy Process?

The Defined Risk Strategy is a unique, repeatable 3-step process the invests in equities, hedges the equities, and seeks additional return with an options portfolio.

Our unique hedged-equity approach is driven by a three-step, rules-based and repeatable "always invested, always hedged" investment process, which removes emotions from the investment process.

Our Repeatable Three-Step Process

Step 1: Invest in Equities

Markets tend to go up over time, so we’re ALWAYS INVESTED.

We passively invest low-cost ETFs to participate in equity market growth over time.

Step 2: Hedge the Equities

Severe losses can derail investors’ goals, so we’re ALWAYS HEDGED.

We actively manage long-term put options to mitigate the impact of bear markets in the portfolio.

Step 3: Seek Additional Return

We actively manage shorter-term options portfolio to help offset the cost of the hedge.

We seek to offset this cost and improve overall portfolio return by actively managing shorter-term options trades, utilizing a disciplined, rules-based approach.


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