Upside Options LLC is a trading advisory newsletter for the retail investor that offers seven investment strategies. All of our strategies can be either self-managed or autotraded. When a strategy is autotraded, the trades are auto-executed in your standard cash or IRA brokerage account. Our strategies use a proprietary 4-level scanner comprising technical, fundamental and factor-based quantitative analysis, also known as quantamental analysis. Most of the strategies open short hedge trades, which reduces downside exposure. For the bullish trades we buy the underlying stock of fundamentally strong companies that have moved into high probability bullish technical setups.
1) Capital preservation is a top priority – We follow well defined exit rules that allow the winners to run, but able to exit positions fast enough to lock in gains and preserve capital during periods of high volatility.
2) When appropriate, we open specialized options-based hedges in most of our strategies at a very low cost, which reduces drawdown during market corrections or crashes.
3) We perform sophisticated analysis that blends technical, fundamental and factor-based quantitative analysis, also known as quantamental analysis.
Iron Condor Pinnacle is a non-directional, income generating, all-weather strategy that can generate positive monthly returns in upward trending, downward trending, or sideways and choppy markets. The strategy focuses on two-week in duration credit spreads and iron condors using weekly options on the S&P500 index. Pinnacle is a conservative implementation that typically generates 3% to 5% return monthly, where capital preservation and safety are a top priority.
Opportunity Strategy 1 is a rules-based, actively managed strategy designed to take advantage of depressed restaurant, retail, department stores, clothing manufactures, hotel and travel/leisure stocks that were hit by COVID-19. As vaccines roll out in 2021, most of these companies are projected to recover, along with their stock prices. Projected gains for this strategy (total portfolio) is 50%+ over the next 12 months.
Global Sector Rotation ETF is a rules-based, actively managed strategy that identifies high probability, bullish positions on ETFs drawn from 90 industry sectors and country specific indexes. The strategy’s foundation is based on the fact that institutional money rotates from sector to sector and around the globe. This strategy “follows the money".
Large Cap Growth focuses on stocks with a market cap of $10 billion and greater.
Small & Mid Cap Growth focuses on stocks with a market cap between $250 million and $10 billion.
Sector Rotation Growth identifies high probability, bullish trades on fast growing companies (individual stocks) that reside in the strongest industry sectors. The strategy’s foundation is based on how institutional money continuously rotates from sector to sector. Our algorithm continuously monitors and ranks 60 industry sectors, and then “follows the money” by identifying the strongest stocks within the strongest sectors.
Contrarian Strategy identifies stocks that have been out of favor for 6 to 12 months and are starting to recover. The bullish trades are on companies with improving fundamentals and that have moved into high probability bullish technical setups.
Dividend Income is a unique, elegant and sophisticated strategy that taps into the consistency and predictability of dividends to generate quarterly income, or compounded portfolio growth. We buy a concentrated basket of blue-chip, dividend paying stocks & ETFs, which includes stocks such as AT&T and Verizon. We approximately quadruple the quarterly dividend through leverage. Finally, we hedge the portfolio with a multi-threshold hedge to handle a 25% to 30% correction of the held stocks. Within the first 30 days of a market correction or crash, drawdown is typically 30% less compared to just buying and holding the stocks. After 60 to 90 days of a market correction, assuming the market stays depressed, the portfolio typically recovers 85% to 100%, as the hedges mature. Targeted returns for the
portfolio are 9% to 11% annually, after commissions.