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Prestige Futures Inc. was incorporated in the State of Virginia in July 2005. The corporation has been inactive until February 2007, which was the time the Advisor became registered as a Commodity Trading Advisor (“CTA”) with the Commodity Futures Trading Commission (“CFTC”) and became a Member of the National Futures Association (“NFA”).
The Advisor’s primary business is to provide capital appreciation to retail and institutional client accounts by managing their accounts pursuant to the Advisor’s proprietary commodity futures trading program. Although the risk of loss exists in futures trading, the Advisor studies the futures markets with the goal of developing strategic investment approaches to add positive performance to investment portfolios.
Trading Program Description
This program sells out of the money options on the S&P futures contract after experiencing unusual Stock Market moves, combined with buying further out of the money options of like kind to provide a defined risk. The Program also trades options on other commodities as well as potentially taking long or short positions as a hedge. The program will also be placing covered call as well as covered put positions. Covered positions carry inherent risk of loss to the underlying commodity in the case of counter market moves and will not always be offset by the premium collected from the short option sold against it. This program contains higher risk of loss then the Advisor's Option Volatility Program. More...
Although not to be intended as a monthly option “time selling” program but more of a strategy of waiting for large market moves to occur before placing the trades in an attempt to collect premium mainly from high volatility, some continuing far out of the money “time selling” can be used to attempt to provide an additional profit while waiting for an opportunity to “sell volatility”.
The trading methodology primarily encompasses technical analysis. Technical analysis is based on the theory that market prices reflect all known factors affecting supply and demand for a particular commodity and that the study of the prices themselves will provide means of anticipating future prices. Technical analysis requires a study of among other things the actual daily, weekly and monthly fluctuations of price, open interest and volume when evaluating with a predictive nature the future course of price actions. These predictions are generally based on computer-generated signals, mathematical relationships, chart interpretation or any combination of such items.
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