The Dorian Fund’s trading philosophy is centered-around utilizing a top-down macroeconomic approach to determine how to deploy client and proprietary capital across global markets. Once opportunities are discovered the firm predominantly executes its ideas through advanced option strategies. The firm believes that it best deploys capital through options but takes advantage of all trading instruments when appropriate.
The firm is principally a net-seller of options although options are also used for capital advantages and risk management. Advanced option selling strategies are used to benefit from cost reduction techniques, implied volatility, mean reversion, duration, and non-directional trading. Based on implied volatility the firm generally executes its trading ideas by selling index options on equities and futures that have a probability of expiring out-of-the-money at one to three standard deviations. Most trades performed by the firm are completed at the two standard deviation level. All trades are always hedged at an instrument and/or portfolio level.
In addition to option strategies the firm buys and sells future contracts and implements long/short future contract strategies as outlined under the “trade types” section of this website. The firm tries to concentrate its trading philosophy and activities around potential monthly income producing trades and investments. The firm believes utilizing sophisticated option strategies presents the best way to execute its philosophy. To learn more about the firm’s trading philosophy, please contact us.