Opes Capital Group, LLC Trading Program 2012
CTA Disclaimer THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THE DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF THE PRINCIPAL RISK FACTORS AND EACH FEE TO BE CHARGED TO YOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR (“CTA”). THE REGULATIONS OF THE COMMODITY FUTURES TRADING COMMISSION (“CFTC”) REQUIRE THAT PROSPECTIVE CLIENTS OF A CTA RECEIVE A DISCLOSURE DOCUMENT AT OR PRIOR TO THE TIME AN ADVISORY AGREEMENT IS DELIVERED AND THAT CERTAIN RISK FACTORS BE HIGHLIGHTED. THIS DOCUMENT IS READILY ACCESSIBLE AT THIS SITE. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL OF THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY MARKETS. THEREFORE, YOU SHOULD PROCEED DIRECTLY TO THE DISCLOSURE DOCUMENT AND STUDY IT CAREFULLY TO DETERMINE WHETHER SUCH TRADING IS APPROPRIATE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. YOU ARE ENCOURAGED TO ACCESS THE DISCLOSURE DOCUMENT BY CLICKING BELOW. YOU WILL NOT INCUR ANY ADDITIONAL CHARGES BY ACCESSING THE DISCLOSURE DOCUMENT. YOU MAY ALSO REQUEST DELIVERY OF A HARD COPY OF THE DISCLOSURE DOCUMENT, WHICH ALSO WILL BE PROVIDED TO YOU AT NO COST. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS TRADING PROGRAM NOR ON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE DOCUMENT. OTHER DISCLOSURE STATEMENTS ARE REQUIRED TO BE PROVIDED YOU BEFORE A COMMODITY ACCOUNT MAY BE OPENED FOR YOU. OPTIONS/FUTURES TRADING CARRIES SUBSTANTIAL RISK NOT LIMITED TO ORIGINAL PRINCIPAL INVESTED. PAST PERFORMANCE NOT INDICATIVE OF FUTURE RESULTS.
Opes Capital Group, LLC Performance Results Since Inception OPTIONS/FUTURES TRADING CARRIES SUBSTANTIAL RISK NOT LIMITED TO ORIGINAL PRINCIPAL INVESTED. PAST PERFORMANCE NOT INDICATIVE OF FUTURE RESULTS.
The Opes Team Combined over 20 years of financial markets, marketing, and investment experience. Joshua Farahi, Principal, Director of Investments Mr. Farahi has worked in finance for over a decade as a private wealth manager. During his career Mr. Farahi served in a number of business and compliance roles including Market Strategist, Branch Principal, Investment Advisor Representative, Options Principal, and as a risk and volatility analyst for a proprietary derivatives portfolio. This experience was instrumental in establishing the Opes Capital trading program's risk management structure. As Directory of Operations and Investments Mr. Farahi is responsible for oversight of the firm and the correct implementation of the firm’s market strategy. Mr. Farahi became registered with the CFTC as an Associated Person in July 2009 and became an Associate Member of the NFA in July 2009. Mr. Farahi found Opes Capital Group, LLC in 2009. Mr. Farahi is a CFA Level II Candidate. Navid Sohrabi, CFA , Sub-Advisor Mr. Sohrabi has worked as a trader or portfolio manager in a multitude of investment styles ranging from long/short equity to global macro. Mr. Sohrabi began his career as an equity/derivatives trader at KL Group in 2001 and quickly rose to head trader within three years. He continued his career as a derivatives portfolio manager at NewPoint Securities LLC in 2005 trading futures and options. In September 2007, Mr. Sohrabi joined Pantera Capital Management, LP, a global macro hedge fund, where he analyzed and executed trades in various asset classes in both domestic and international markets. He helped develop Opes’ trading strategy and has been involved with the firm in multiple capacities since inception. OPTIONS/FUTURES TRADING CARRIES SUBSTANTIAL RISK NOT LIMITED TO ORIGINAL PRINCIPAL INVESTED. PAST PERFORMANCE NOT INDICATIVE OF FUTURE RESULTS.
The Opes Way Operational Aspects : Opes’ Client accounts are separately managed accounts traded through Interactive Brokers, LLC** , which has and an expansive catalogue of products. Additionally, their technology is competitive and their interface is easy to use for both the Portfolio Manager and clients (clients receive daily statements). Interactive Brokers currently has over $4.6 Billion in equity capital. An important aspect of our program is the transparency afforded to our clients . Each client account is a separately managed account that has its own account number with Interactive Brokers, LLC. Client funds are never comingled with other accounts, and each client has online access to check the status of their account and to request money wires at their own discretion. An additional layer of transparency that Opes provides its clients is that client performance results are calculated by a 3 rd party provider, Compliance Supervisors, Inc ., which has access to all trading data directly through Interactive Brokers. Because Compliance Supervisors is a third party accounting firm, we believe this relationship further strengthens the integrity of our performance numbers. For more information on Interactive Brokers, LLC go to : http://www.interactivebrokers.com/en/p.php?f=ibgStrength **Opes Capital has established give-up relationships with other FCMs, please contact for more information. OPTIONS/FUTURES TRADING CARRIES SUBSTANTIAL RISK NOT LIMITED TO ORIGINAL PRINCIPAL INVESTED. PAST PERFORMANCE NOT INDICATIVE OF FUTURE RESULTS.
What We Trade Opes Capital Trades Options on S&P Futures Contracts The S&P 500 futures market has now become today's most actively traded equity futures contract. The S&P's futures contract represents roughly 90% of all US stock index futures trading. S&P e-mini futures options trade about 150K contracts daily. The S&P 500 is comprised of the largest 500 listed stocks, therefore allowing you to easily and effectively buy or sell an extremely well diversified portfolio of stocks in one stock index futures contract. This allows you to make trading/investing decisions based on your overall outlook of the stock market. The advantages of options in our strategy are the inherent leverage in the contracts and the increased margin of error. OPTIONS/FUTURES TRADING CARRIES SUBSTANTIAL RISK NOT LIMITED TO ORIGINAL PRINCIPAL INVESTED. PAST PERFORMANCE NOT INDICATIVE OF FUTURE RESULTS.
The Opes Way The Opes Trading Program trades the equity markets (trend and counter trend) using options on the S&P e-mini futures. Some traders use stocks, others futures; we use options. Our strategy is discretionary and based on proprietary technical models, a systematic capital deployment program, and a dynamic risk management system. The strategy has returned over 76.49% net since inception (October 2009) in a very volatile and unpredictable market. (Returns are audited by a third party and are available upon request) Return Objective: Consistent returns independent of market direction. Goal is 3-6% quarterly. Risk Objective: Implicit risk management through systematic capital deployment. Discretionary parameters set by peak to trough analysis. We hedge directly by using spreads when trading calls. Additionally, our positions have low delta and strict position limits to counter risk. When trading puts we also use spreads to limit our potential loss in a persistent negative market. As a result, in such markets our maximum loss is defined upon entry . Spreads also help mitigate our gamma risk. OPTIONS/FUTURES TRADING CARRIES SUBSTANTIAL RISK NOT LIMITED TO ORIGINAL PRINCIPAL INVESTED. PAST PERFORMANCE NOT INDICATIVE OF FUTURE RESULTS.
The Opes Way Investment Process: We begin with a 3-6 month economic and market outlook, then break it down into 4-6 week trading windows. This process encompasses analyzing current and expected economic conditions, historical precedent, current and expected volatility, various technical indicators and multiple proprietary technical models. Current implied volatility and any immediate expected changes are incorporated into the short term focus when selecting optimal strikes to add to the portfolio. Potential trades are filtered through a risk management model which includes value at risk and margin considerations. The program’s focus is the S&P 500 index to minimize the portfolio's unsystematic risk. There are strict position, overall market direction, daily execution, and account margin limits, which all contribute to risk management structure. As option/volatility sellers, our risk framework is crucial to our program’s sustainability. The trades are then executed according to the Portfolio Managers instructions. Positions are monitored daily and adjusted if market view changes or if the position values are adversely affected by market fluctuations, violating predetermined risk management criteria. OPTIONS/FUTURES TRADING CARRIES SUBSTANTIAL RISK NOT LIMITED TO ORIGINAL PRINCIPAL INVESTED. PAST PERFORMANCE NOT INDICATIVE OF FUTURE RESULTS.
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