PLUTUS ALPHA

LOOKING FOR ADDITIONAL RETURNS ABOVE DIVIDENDS/CAPITAL GAINS

Now generate 5-6% p.a. additional returns by selling options on the Nifty 50 index.

Introduction

Through Plutus Alpha, we aim to generate income on an investor’s existing portfolio. This proprietary derivatives strategy
intends to generate income by selling options with the Nifty 50 as the underlying and earn premium.

Investment Philosophy

The existing portfolio of the
investor is used as margin to run
the Plutus Alpha strategy

Sell options on the NIFTY 50
index, having a max.
maturity of 28 day

The investor earns the premium as
long as the market stays in the
determined range

Risk is limited since
the maximum drawdown
is capped at ~4%

It is not mandatory either
for us or the client to take
a position every month


Key Attributes

View is direction
agnostic

75-85% of all options
expire worthless

No need to invest
additional money

Income is incremental
to the gains on
underlying investmentss

Monthly exit
option available

Performance Comparison

As on 31st May 2020