Real Drawdown Protection, Not Just Theory: The SIXH Advantage

2025-08-01 03:51:19 ET

I am usually not a big believer of option strategies as an income generator or volatility management technique in the long run. I have documented my general reservations against the strategy here . My concerns are not around the upsides of that options cap - that is a feature, not a bug. My concerns are that more often than not, such strategies are not equipped to provide significant drawdown protection either (only a few percentage points). Even in flat markets, where the option layer should be earning a 1-2% a month in theory, in real life market scenarios (which are rarely flat and more a down trip followed by rebound = flat) the alpha is often missing....

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