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 is a seasoned financial professional and the Owner of Alpha Wealth Funds. He began his career at Fidelity Investments, where he served as a Retirement Relationship Manager and helped oversee $500 million in retirement assets.
Chase manages the Alpha Low Volatility Fund, Alpha Synthetic Equity Protection Fund, and Volatility Advantage Fund, specializing in derivative hedging strategies. Chase is also a Certified Financial Planner (CFP).
A Utah native and BYU graduate, he enjoys skiing, trail running, rock climbing, dancing, and the arts with his wife and growing family.
Education
CERTIFIED FINANCIAL PLANNER™
Brigham Young University, Bachelor of Arts
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