Behavioral Interpretation of option risk premiums helps build a qualitative understanding that guides the quantitative design of investment strategy. A multi-asset approach is undertaken to build such an interpretation.

Stochastic Modeling of  market micro-structure is undertaken, addressing non-classical findings of empirical analysis. By understanding option contracts under realistic market behavior, prices of options are expressed as option risk premiums. These strike-tenor-asset dependent option risk premiums guide portfolio construction. 

Empirical Analysis is the starting point for strategy design. Market behavior is not close to that depicted in classical theory, especially from the perspective of understanding the risk-return trade-offs in option contracts.

Volaris Overlay Solutions

Volaris Methodology

Risk Constraints limit the range of parameters for strategy design. Portfolio construction, while informed of the opportunity set, is always subservient to explicitly articulated risk constraints. Traded instruments and configurations are limited to those amenable to such explicit articulations.

  • Clients may use existing portfolio holdings (stocks, bonds, etc.) as collateral to employ Volaris strategies.
  • Minimal opportunity cost implementation employing listed options in Separately Managed Account.
  • Defined risk strategies with transparency and daily liquidity.

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Volaris Capital Management, LLC (“RIA Firm”) is a registered investment adviser located in Millburn, NJ. Volaris Capital Management, LLC may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements.  Volaris Capital Management, LLC’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Volaris Capital Management, LLC’s web site on the Internet should not be construed by any consumer and/or prospective client as RIA Firm's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by Volaris Capital Management, LLC with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Volaris Capital Management, LLC, please contact the state securities regulators for those states in which Volaris Capital Management, LLC maintains a registration filing. A copy of Volaris Capital Management, LLC’s current written disclosure statement discussing RIA Firm's business operations, services, and fees is available at the SEC’s investment adviser public information website – or from Volaris Capital Management, LLC upon written request. Volaris Capital Management, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Volaris Capital Management, LLC’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

This website and information are provided for guidance and information purposes only.  Investments involve risk and unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy.  This website and information are not intended to provide investment, tax, or legal advice.