Turning option market insights into ”absolute” return
Option Absolute Return Strategy ("OARS") is a unique, absolute return, equity option strategy which targets consistent ”bonds plus” returns with volatility similar to that of a diversified bond portfolio. Designed to work as an overlay solution together with underlying equity and bond portfolios, OARS is built upon the same option market experience of Parametric’s DeltaShift covered call writing strategies.
Parametric maintains that professional management of options and derivatives gives both our private and institutional clients powerful tools to manage risk and shape return. Increasingly qualified investors are exploring the role of options in their overall strategies. We have observed that arbitrage opportunities enabling investors to profit from volatility in the equity option market not only exist, but also are persistent.
Key OARS features
- Involves buying and selling equity-index options in an effort to generate returns that are not correlated with most traditional asset classes.
- Seeks to exploit a persistent imbalance between the supply and demand for equity options − as evidenced by the long-term relationship between measures of implied and realized volatility.
- Clearly defined investment goals, systematic modeling, and explicit and ongoing risk management.
These products and options are not suitable for all investors. Please ensure that you have read and understood the current options risk disclosure document before entering into any options transactions. In addition, please ensure that you have consulted with your own tax, legal and financial advisors prior to contemplating any derivative transactions. The options risk disclosure document can be accessed at the following web address: http://www.optionsclearing.com/about/publications/character-risks.jsp.
©2011 Parametric Risk Advisors, LLC. All Rights Reserved. Parametric Risk Advisors and Design, OARS™ and DeltaShift™ are service marks of Parametric Risk Advisors, LLC. Parametric Risk Advisors, LLC is a subsidiary of Parametric Portfolio Associates, LLC. Parametric Risk Advisors, LLC and Parametric Portfolio Associates, LLC are investment advisors registered with the SEC.
Parametric Risk Advisors is the investment advisor. It is a subsidiary of Parametric Portfolio Associates, LLC, which is a majority-owned subsidiary of Eaton Vance Corp.