Optima is a trademarked strategy of California Investment Trust Advisory Group. In Optima covered option strategy accounts we seek to generate cash flow in the form of option premium income. This premium income can help investors meet cash flow needs. Additionally, Covered Call strategies have been shown over time to reduce volatility (as measured by Standard Deviation) while still generating market returns.
Our portfolio management team utilizes fundamental and third party research to select a basket of underlying equities that are undervalued by the market. We purchase these securities then utilize our own proprietary Optima software to identify call options that are overvalued by the market. Optima is a real-time quantitative tool that mathematically analyses potential outcomes. By utilizing Optima as well as the many data sources available to us, we seek to buy stocks that are undervalued and sell options that are overvalued by the market.
Option trading is not suitable for all investors. Investors should read and understand the Characteristics and Risks of Standardized Options.