SPK option trading is the proprietary model which has personally developed by Alexander Shpak and offered to our clients since September 2009. The SPK trading model is based on a technical analysis (Scheme Charts - charts compression technique) and statistical research of the last 20 years (since 1996) of the daily and intra-day changes of the United States stock markets. For analyzing the option strike price we also use our unique mathematical model â€œRisk Movement Matrixâ€ (RMM) personally developed by Alexander Shpak.
The strategy involves the trading of various series mini S&P puts and calls options on the S&P 500 future (ES, EW, EOM option series). The program is relatively simple, with only one traded asset â€“ the S&P 500 options market that is based on the S&P 500 futures which in turn relies on the S&P 500 Index. This index is calculated as a weighted average of the 500 biggest (by market capitalization) public companies in the United States. The trading involves combination of options strategies by buying and selling E-Mini S&P 500 options, usually between 2-6 weeks until expiration and depending on the current market conditions.
The main advantage of this program is that it works across a wide range of market conditions, not depends on market direction and may be great complement to trend-following and other systematic strategies. We hope that this program will be mostly suitable for investors who are seeking an alternative return or diversification, which has the potential to gain consistently over time.