Strategy Overview

Jain Capital specializes in options-based investing. We provide a quantifiable approach to investing. Risk/reward in most market conditions are clearly defined. We specialize in using ETF and options on ETF to achieve our investment objectives.

Historically, options-based investment strategies such as PutWrite and BuyWrite have delivered better results with lower volatility then buy-and-hold. We take these two basic strategies and make several enhancements designed to produce better results.

MergeWrite[TM] Options Strategy

Jain Capital has developed an innovative MergeWrite strategy that merges elements of PutWrite and BuyWrite into a single unified strategy. This strategy leads to efficient trading and better results. We deploy MergeWrite in conjunction with other strategies such as straddles as needed.

Macro Investing

Using options, we can create a "synthetic" exposure to an asset class. We typically maintain a long-biased exposure to an asset class, but may at times be short some asset class.

Asset classes we normally work with:

  • Equities (domestic and international)
  • Fixed income (domestic and international)

Options Laddering[TM]

Another key innovation we make is to adapt a strategy commonly used in fixed-income markets of “laddering”. Fixed-income investors often buy bonds of varying maturity to mitigate interest rate risk and increase returns. A similar Options Laddering technique using short and long term options.

Cash Management

Basic PutWrite strategy assumes all cash is invested in short term T-Bills. Interest earned on cash accounts for 1/3 of the total returns of the PutWrite strategy. Since our exposure to underlying assets is “synthetic” via options, we have a lot of flexibility in how we deploy the cash on hand.

By accepting a higher level of volatility, there are various ways to generate higher yields compared to T-Bills.