Ohla Holdings “Earnings from Science, Risk, and Art.”
Our science of what we do is based on a modified Black Scholes model. This takes into account the market movements at given levels of volatility in a given period of time. We then apply our rules-based investment criteria to the decision of where to write (sell) puts and calls on the S&P 500 index.
The risk of what we do is based upon a disciplined strategy, replicated weekly, to extract absolute returns from trading short term volatility option spreads. S&P 500 Index Options are “European” style. Even if a “flash crash” were to occur, European style options cannot be exercised until expiration (i.e. the May 6, 2010 Flash Crash was a United States trillion-dollar stock market crash which lasted 36 minutes. Stock indexes, such as the S&P 500, Dow Jones Industrial Average and Nasdaq Composite, collapsed and rebounded very rapidly).
The art of what we do is the effective management of market sentiment and effective management after positions have been established. We do monitor all of our option positions with mitigation of potential losses at what we feel are acceptable levels.
We can execute our trading strategy in rising, falling and flat market environments.
Our Capabilities
Results:
Our average monthly returns are targeted for 2.0%. Annual rolling returns (any 12 consecutive months) are ranging between 24.0% to 36.0% net of fees and expenses. At that rate, funds double approximately every three years, without allowance for taxes.
Tax Efficient Returns and Absolute Returns:
The returns from the option contracts we trade are tax advantaged. Under IRS Sect. 1256, the returns from selling options are taxed to the investor as 60% long term capital gains and 40% short term capital gains.
Repeatable Results:
By sticking to our disciplined methodology, we can execute trades with confidence of success based upon our history and experience. Dave Kinghorn has over 30 years investment history and 30 plus years of business consulting experience as a Chief Financial Officer (“CFO On The Go”).