INVESTOPEDIA PORTFOLIO PROJECT
FALL 2023
Investment Goals and Risk Tolerance
Our primary investment goal is to generate more than 50% return over a condensed investment period by aggressively compounding
capital through concentrated exposure to idiosyncratic stock volatility.
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Aim to generate a 50% net return on our portfolio within condensed
investment period
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Aggressively compound capital through concentrated exposure to high
volatility of options
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Require extremely high risk tolerance for aggressive positioning, along
with a strategic approach to maximize asymmetric opportunities in
the market
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FALL 2023
INVESTOPEDIA PORTFOLIO PROJECT
Economic and Market Analysis
The outlook of the economy remains volatile, as multiple headwinds, including slowing growth, elevated inflation, and tightening
monetary policy, continue to impact the macroeconomic environment of the U.S.
Monthly Inflation Rate and Interest Rate in the U.S. (2020-2023)
Inflation rate
Interest rate
Jan '20
Feb '20
Mar '20
Apr '20
May '20
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Oct '20
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Jan '21
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Dec '21
Jan '22
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Mar '22
Apr '22
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Aug '22
Sep '22
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Jan '23
Feb '23
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Jun '23
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Sep '23
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Current Events Impacting Volatility
Ukraine War
Tightening
Monetary Policy
U.S. Midterm
Elections
•
Disrupted supply chains cause energy prices
to surge, leading to increased volatility in
global economy
Geopolitical
Tension
•
Central banks have been aggressively raising
interest rates to combat inflation
Israel-Palestine
Conflict
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U.S. midterm election in November 2023
resulted in divided Congress, leading to
uncertainty about direction of fiscal policy
Lingering
Covid Effects
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Ongoing tensions between the United States
and China have contributed to volatility
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Instability of the region caused fluctuations of
oil price, which is an important indicator of
market volatility
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Renewed concerns about the spread of new
variants continues the Covid impact on global
economy
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FALL 2023
INVESTOPEDIA PORTFOLIO PROJECT
Conclusion
High risk and aggressive strategy allowed us to generate an outsized return on investment, and our risk management strategies have
maintained the structure of our portfolio.
Investment Goal Achieved
Our portfolio has generated a 50%+ net return on our portfolio within investment period
Risk Management Strategies
Cash Buffers
Minimal
Correlation
Exposure
General Market
Hedging
Position Limits
Investment Strategies
Straddling
Speculative OTM
Directional Options
Shorting
Sector Selection
Risk Management
Market Analysis
Disclaimer: DO NOT TRY AT HOME!!! (Not financial advice)
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