The Alpha Low Volatility Fund is built on a simple but powerful principle: options lose value as they approach expiration. By systematically capturing this time decay, the fund is designed to pursue return opportunities while aiming to minimize portfolio volatility.
Designed to capture extrinsic value.
Across indices and asset classes.
For more favorable taxation on gains.
To help manage exposure and support capital preservation.
The Alpha Low Volatility Fund is a market-neutral strategy seeking noncorrelated returns that are independent of market swings. The Fund utilizes the natural decay of index options and other derivatives. As options are expiring assets, the entire extrinsic value is exposed to time decay, which, when all else is equal, decreases the value of the option contract each day up to expiration.
An option contract has no time value at expiration and is only worth its intrinsic value, or the value of the underlying security above (call option) or below (put option) the underlying security.
The Fund will generally generate short-term capital gains but also aims to take advantage of favorable tax treatment available afforded under Section 1256 Contracts of the IRS code. Any gain or loss from a 1256 Contract is treated for tax purposes as 40% short-term gain 60% long-term.
Options trading is not without substantial risk and although the Fund aims to provide steady returns with low volatility there are no assurances that this goal will be accomplished. In times of extreme volatility, potential losses can far exceed gains.
Chase Thomas began trading stocks at the age of 10. Propelled by his passion for finance, Mr. Thomas entered the financial world immediately after graduating from Brigham Young University. He began his career with Fidelity Investments, earning his Certified Financial Planner designation, and ultimately oversaw five hundred million dollars in client assets. In 2015, Mr. Thomas left Fidelity Investments to start his own asset management practice focusing on adding value through time value strategies. After three years of solid growth, Chase merged his practice with Harvey Sax, and became a manager and owner of Alpha Wealth Funds, LLC.
Education
CERTIFIED FINANCIAL PLANNER™
Brigham Young University, Bachelor of Arts
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