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.
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.
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:
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.
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.