An Advanced Income Strategy
ZEGA brings options to the table when it comes to your supplemental investment opportunities. HiPOS, our High Probability Options Strategy, is for the investor looking for a unique option strategy with targeted monthly returns.
We stand behind this strategy as an advanced, innovative solution to your additional income needs. Here are a few reasons why we know HiPOS is an effective choice:
- A truly unique alternative that takes advantage of the natural time decay of short-term options.
- Creates supplemental income without exposure to rising interest rates.
- Highly liquid portfolio brings accessibility to your investments.
- Combines a sophisticated, advanced strategy with the familiar transparency and low fees of an SMA structure.
A Track Record That Speaks for Itself
An impressive historical return profile makes our strategy an attractive and smart option for those looking to diversify their holdings. While there’s always risk of fast downward moving markets, our 10+ years of experience managing this strategy have helped deliver an uncommon set of returns.
Options for Every Comfort Level
Choose from an aggressive, moderate, or conservative HiPOS based on your investment comfort level and risk tolerance. Picking the right option gives you the freedom to diversify and grow supplemental income your way.
Which Best Describes You?
Our conservative HiPOS offers a more modest approach, making it an ideal strategy for the investor looking to supplement a fixed income. We offer this strategy as a way to diversify your portfolio at a risk level that is comfortable and doable for you.
Our income HiPOS offers a lower volatility approach. HiPOS Income contains mix of Treasuries and HiPOS Conservative positions. This strategy targets an annual return of 3-6%.
Performance Tear Sheets
Documents
Performance
HiPOS Income
| as of 10/31/2024 |
MTD | YTD | 1 Year | 3 Year | 5 Year | 10 Year | ITD |
| HiPOS Net* | -0.29% | 1.76% | 2.63% | 3.23% | 3.77% | 3.72% | 3.86% |
| Benchmark (US AGG) | -2.48%
|
1.87% | 10.57% | -2.17% | -0.21% | 1.50% |
|
HiPOS Conservative
| as of 10/31/2024 |
MTD | YTD | 1 Year | 3 Year | 5 Year | 10 Year |
ITD |
| HiPOS Net* | -0.30% | 2.20% | 3.05% | 6.50% | 7.76% | 7.81% |
7.53% |
| Benchmark(CBOE S&P) | -0.48%
|
12.83% | 17.84% | 6.79% | 8.70% | 7.46% |
|
High Probability Options Strategy
*Note: Returns are expressed in US Dollars net of fees.
ZEGA Investments is a registered investment adviser and investment manager that specializes in derivatives. ZEGA is a separate accounts manager and all returns expressed herein are solely from the separate accounts business within ZEGA.
The High Probability Options Strategy – Aggressive Growth composite includes all institutional, retail, and founder portfolios that deploy out of the money credit spreads across the entire portfolio. This strategy targets out of the money strikes that can typically produce target returns of 1% to 3% per trade. The strategy aims to deliver risk-adjusted returns that are uncorrelated to the broader markets. A rapidly declining market generally negatively affects the strategy’s credit put spreads. The Aggressive Growth version maximizes the amount of buying power available in a portfolio, and therefore takes on the maximum amount of risk. This composite includes all portfolios that were at least 70% dedicated to this strategy. The benchmark is the CBOE Put Write Index.
The High Probability Options Strategy – Conservative Composite includes all institutional and retail portfolios that deploy deep out of the money credit spreads across the entire portfolio. This strategy targets out of the money strikes that can typically produce target returns of 1% by seeking strikes that are further out-of-the-money than the trades deployed by the other HiPOS strategies. The strategy aims to deliver risk-adjusted returns that are uncorrelated to the broader markets. A rapidly declining market generally negatively affects the strategy’s credit put spreads. This composite includes all portfolios that were at least 70% dedicated to this strategy. The benchmark is the CBOE Put Write Index.
The High Probability Options Strategy – Moderate Composite includes all institutional and retail portfolios that deploy deep out of the money credit spreads across the entire portfolio. This strategy targets out of the money strikes that can typically produce target returns of 1% by seeking strikes that are further out-of-the-money than the trades deployed by the other HiPOS strategies. The strategy aims to deliver risk-adjusted returns that are uncorrelated to the broader markets. A rapidly declining market generally negatively affects the strategy’s credit put spreads. This composite includes all portfolios that were at least 70% dedicated to this strategy. The benchmark is the CBOE Put Write Index.
The High Probability Options Strategy – Income composite includes all institutional and retail portfolios that deploy out of the money credit spreads across 40% to 60% of the portfolio. Spread requirements are collateralized with cash, money market ETFs, or short-term US Treasuries for the remainder of the portfolio. This strategy targets out of the money strikes that can typically produce target returns of 0.25% to 0.50% per trade. The strategy aims to deliver risk-adjusted returns that are uncorrelated to the broader markets. A rapidly declining market generally negatively affects the strategy’s credit put spreads. This composite includes all portfolios that were at least 70% dedicated to this strategy. The benchmark is the Barclays US Aggregate Bond Index.
ZEGA Investments claims compliance with the Global Investment Performance Standards (GIPS). To receive a full list of composite descriptions of ZEGA Investments and/or a presentation that complies with the GIPS standards, contact Jay Pestrichelli at 1-800-380-9342, ext 101 or jay.pestrichelli@zegainvestments.com.
Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client’s portfolio.
These results should not be viewed as indicative of the advisor’s skill. The prior performance figures indicated herein represent portfolio performance for only a short time period, and may not be indicative of the returns or volatility each portfolio will generate over a long time period. The performance presented should also be viewed in the context of the broad market and general economic conditions prevailing during the periods covered by the performance information. The actual results for the comparable periods would also have varied from the presented results based upon the timing of contributions and withdrawals from individual client accounts. The performance figures contained herein should be viewed in the context of the various risk/return profiles and asset allocation methodologies utilized by the asset allocation strategists in developing their model portfolios, and should be accompanied or preceded by the model.
Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment’s volatility. Employee accounts do not pay advisory fees, so the returns illustrated for the strategy are higher than they would be if employee accounts paid similar fees.
The investment management fee schedule for the composite varies. Our wealth management fee for portfolio management services is 1.5%. These fees are negotiable depending upon the client’s investment situation and the client’s objectives. Our sub advisory fee for portfolio management services is 0.75%. These fees are negotiable depending upon the complexity and scope of the plan.
Certain portfolios may incur additional advisor directed fees. As a result, ZEGA’s returns for these accounts are net of the additional fees due to our subadvisor agreements.