Pinnacle

The Pinnacle strategy is a conservative, non-directional, income generating, all-weather strategy that is optimized for the following conditions:

  • It’s optimized for the “New Political Era” – This strategy can handle the volatility that can come out of Washington DC, which can sell-off stocks at any time
  • This strategy is highly optimum when the market trades sideways and choppy – like it did for almost 20 months, 2018 through Nov 2019, where it was difficult to generate consistent positive gains using stocks, ETFs or indexes.
  • As of early June 2020 the market is now optimum for a non-directional strategy like Pinnacle, where volatility has declined from the COVID-19 crash to a manageable level.  The slightly elevated volatility allows us to bring in higher levels of premium where the strategy should be able to generate 4% to 7% monthly through the end of 2020.

Characteristics of the non-directional Pinnacle Strategy:

  • Pinnacle is a non-directional, all-weather, index credit spread & iron condor options strategy that can generate positive monthly returns in upward trending, downward trending, or sideways and choppy markets.
  • We hold maximum of 3 to 4 positions at any one time representing a 30% to 40% exposure of the portfolio
    • Each position represents 10% of the portfolio and is open for 2 weeks
    • We hold sufficient cash in the accounts to make trade adjustments when volatility unexpectedly rises
  • This strategy is conservative by construction because we have a low level of exposure, but we’re still able to make solid monthly gains
  • Targeted returns for the total portfolio are typically 3.0% to 5.0% per month after commissions; due to elevated volatility as of June 2020 targeted returns are 4% to 7% monthly through the end of 2020.
  • Capital preservation and safety are a top priority
  • We have 18 years of experience in trading and optimizing this strategy