Select clients have access to the Alchemy Opportunity Fund.
Alchemy Opportunity Fund attempts to identify undervalued, beaten down premier companies that offer the investor a significant opportunity for recovery and outsized profit potential. By performing in-depth analysis of the company and its industry, the Opportunity Fund is well positioned to take advantage of those opportunities as they arise. In simple terms, after Alchemy Opportunity Fund identifies a company and sets a target acquisition price it utilizes a rigorous proprietary approach through the use of the selling of put options. By selling put options on the stock, sometimes in conjunction with outright purchase of the stock, and other times targeting the stock solely through the use of writing puts, the fund is placed in the luxury position of a sort of win-win investment scenario. The fund will usually confine most of its work to those options that are below the cuurent stock price and that do not expire for 9-15 months. The beauty of the strategy and thus the win-win quality is that by selling the put with a disciplined return in mind, the fund takes in current income through premium. In the scenario that the stock continues to appreciate, the fund gets to retain the premium. In the scenario that the stock declines, the fund wants to own the stock anyway and now is in the position, through the use of selling puts, to acquire the stock at a better price than its initial target. This strategy using options is meant for serious long-term investments, as a sort of "insured" or "minimal risk" method of investing.