Strategy

Harnessing The Power of Non‑Correlated Return StreamsOur strategy is based on combining several non-correlated return streams together to create a durable approach to compounding returns at 20-30% per year, without taking excessive risks along the way. It includes the following key strategies.

Past performance is not indicative of future results. Individual results may vary. Investing involves risk, including the potential loss of principal. Always consult with a registered investment adviser.

Selling Puts (Core Strategy)

The bread and butter of our approach. Each put sale results in one of two favorable outcomes:

  • Buy world-class businesses at discounted prices, OR
  • Earn 20-30% annualized returns from premiums

Generate consistent income and/or reduce our cost basis on stocks already trading at attractive prices

Owning Great Businesses

Building positions in world-class companies. We acquire shares through:

  • Assigned puts at attractive prices
  • Direct purchases at value points
  • Hold for dividends & appreciation

Then: Sell covered calls for additional income streams

Asymmetric Call Options

Rare but powerful opportunities. We look for:

  • Extremely low implied volatility
  • Mispriced options vs. fundamentals
  • Setups that don't come around often

Example: BTI calls up 201% (as of November 21)” and suggest getting rid of the rest of the text

Protective Put Hedges

Insurance for black swan events. Strategic protection through:

  • Portfolio-level hedges
  • Managed risk exposure

Goal: Sleep well at night knowing downside is protected

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No obligation to buy