Rethinking Portfolio Management

M1 Capital Management is a Bloomfield Hills, MI based money management firm, founded by former principals of thinkorswim Advisors. We specialize in risk reduced tactical investing, blending alternative and traditional strategies.

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Option Strategies

Option Enhancement Strategy

The M1 Capital Option Enhancement Strategy (OES) utilizes defined risk option spreads attempt to generate income against portfolio assets. The OES can be applied to individual stock portfolios, ETF portfolios, mutual fund holdings, fixed income, and cash holdings. The option spread strategies are executed using the most liquid broad based index option securities, primarily SPY (S&P 500), that are available in the listed option markets.

The primary benefits of the Option Enhancement Strategy are:

  1. Potential generation of income against portfolio assets.
  2. Ability to select absolute dollar risk based on each individual client’s objectives and risk tolerance.
  3. Strategy can be market neutral, bullish, or bearish depending on portfolio holdings and market environment.
  4. A primary criterion for initiating an Option Enhancement Strategy position is a minimum 75% probability of success at inception.
  5. Can be applied in margin and IRA accounts.
  6. Can potentially generate income in up, down, or sideways markets.

We believe the OES is an excellent diversifier to a traditional investment portfolio. When successful, the OES can provide an alternative source of revenue independent of market direction. For additional information, contact our Chief Options Strategist Steve Rashis at 312-646-2514.