Nations Strategy Indexes
Nations® Low Volatility
Nations Low Volatility Indexes are a major advance in hedged investing.
Nations Low Volatility products take advantage of option skew and the term structure of options to generate substantially superior risk-adjusted returns.
Nations® Better Beta®
Nations Better Beta® Bull Option Levered Indexes are the first indexes to use an innovative strategy that generates leverage when markets rally without generating leverage when they fall.
The result is a superior vehicle for both investors and speculators.
Nations® Better Beta®
Nations Better Beta® Inverse Option Levered Indexes are superior to techniques for generating inverse leverage.
All Nations Option Levered products generate leverage in the gain direction without generating leverage in the loss direction.
Nations Better Beta Bear indexes are superior tools for both hedgers and speculators.
Some are calling options the perfect asset since they provide superior risk/reward profiles when combined with underlying asset portfolios
All Nations® option enhanced strategies combine underling asset portfolios with systematic, theoretically robust option methodologies and result in superior investment vehicles.
Nations® option enhanced strategies take advantage of the unique synergy that results from the combinations of underlying asset portfolios and covered options. The heart of that synergy includes:
- Diversification – Diversification is achieved through the negative correlation to the underlying asset portfolio fo the option portfolio
- Option Price Premium – Over time, the prices received by option sellers (implied volatility) is greater than the subsequent value of those options (realized volatility). This phenomenon exists for several reasons including the demand for protective options from hedgers and the asymmetrical nature of returns for option sellers.
- Volatility Skew – Some options are consistently more expensive than other options. Nations Indexes take advantage of this skew by selling options that are more expensive and buying options that are less expensive.
- Option Quantity Modulation – Nations strategies objectively modulate the number of options sold in order to sell more options when options are expensive and to sell fewer options when options are less expensive.