White River Group is a registered Commodity Trading Advisor whose primary goal is to generate the highest quality of risk adjusted returns for clients. White River Group’s trading strategy is discretionary, although technical analysis goes into defining trading strategy. Fundamental factors, including inflation view and economic indicators, are also taken into account. White River Group’s programs trade futures and options in a broad array of markets, including, but not limited to, currencies, energies, equities, grains, interest rates, meats, metals and softs (e.g., sugar, cocoa and coffee), traded on U.S. and non-U.S. exchanges.
White River Group engages primarily in “selling” or “writing” of options on futures contracts. The core premise based on the statistic that, historically, approximately 90% of option buyers incur losses on their purchased options, because most “purchasers” of options are seeking an insurance policy for their underlying investment. White River Group, acting as the seller of options to these buyers, is essentially acting as an insurer by selling options in return for a premium. Once the options expire worthless, White River Group retains the premium as a profit.
The firm’s Stock Index Option Writing strategy writes call and put options on index futures (primarily on the S&P index, but occasionally also on other indices). The strategy is designed to capture the decay of option premiums. The program sells deep out of the money options after unusual stock market movements. Option contracts are written at a sufficient distance to allow for the options to expire worthless. Primarily uncovered or naked options are sold (although spreads are utilized at times). White River Group may also take outright positions in the underlying future contract.
Arctic Asset Management, LLC, doing business as White River Group, was formed as an Illinois Limited Liability Company in November 2006. White River Group 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”) in January 2007.
Please be advised that trading futures and options involves substantial risk of loss and is not suitable for all investors. There are no guarantees of profit no matter who is managing your money. Past performance is not necessarily indicative of future results.