robocar disruption

Armored power-investing in Tesla

Blending broad index exposure + Tesla call options to pursue all-in effects on spikes, without going all-in.

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by the numbers
Type
Active Equity
Typical # of Holdings
10 to 15
Tesla exposure
25% (15% stock, 10% options)
Index exposure
73%
Test DRive

Theoretical Backtest

Play around with how an investment strategy blending TSLA stock, TSLA call options, and a tech index would’ve performed in 2019-2020

Sources:  Option Research & Technology Services (ORATS).  Calculations by Volt Equity. "Tech index” uses Invesco QQQ ETF as the underlying asset. “Strategy” assumes 15% TSLA stock, 10% TSLA call options, and 75% QQQ investments with rebalancing to the aforementioned ratios every year. The call options assume purchasing split-adjusted calls with 124 strike and 1/15/21 expiry for 2019, and rebalancing to split-adjusted calls with 170 strike on 1/21/22 for 2020 according to the aforementioned ratios. The calls represent strike prices that have the potential to outperform if the stock price moves drastically. The results are hypothetical results and are NOT an indicator of future results and do NOT represent returns that any investor actually attained.

Portfolio breakdown

Anatomy of the Strategy

BASE FEATURE
15% Tesla Stock

Start with a solid base investment in Tesla stock.

Why tesla
supercharge feature
10% Tesla Call Options

Add the explosive power of strategic call options. This creates the potential to significantly outperform a 100% Tesla stock strategy when spikes in value occur.

The secret sauce.

Volt Equity has partnered with Dr. David Berns, PhD (Massachusetts Institute of Technology) to develop a nuanced call option overlay strategy.

the power of CALLS
BASE FEATURE
73% Index investment

Bolster with a tech-focused index for broad diversification and growth potential independent of Tesla.

why an index
armor feature
2% Tech index put options

Finish with scientifically chosen put options to mitigate severe tech market crashes.

Small footprint. Massive power.

Volt employs a proprietary put selection algorithm designed by Dr. David Berns, PhD (Massachusetts Institute of Technology) to handle a variety of market drawdowns.

Tenets of our Strategy

1. Spikes are key

Slow and steady growth is good, but how your investment strategy handles unexpected spikes (positive and negative) is what distinguishes a great investment strategy from a good one.

the power of puts

2. Options can milk the spikes

Behind the complexity of options trading lies a powerful investment weapon. Call options can significantly amplify upward spikes. Put options can take crashes and limit or even reverse their effect.

the power of puts
How a call overlay can amplify spikes
How a put overlay can limit or reverse crashes

3. FSD and Robotaxis will change everything

Not many realize that Tesla is the runaway leader in the race to achieve autonomous driving and robotaxis. They're on the cusp of a breakthrough with full self-driving (FSD). This may trigger a chain reaction that can send its stock value spiking.

the power of puts

4. Hold for the spikes

Precisely timing a spike is virtually impossible.  So it's imperative to be able to endure periods of underperformance and hold for the spikes.

the power of puts
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Investment Approach Comparison

¹ Depending on the severity of the crash, the effectiveness of the puts can range. Generally speaking, the more severe the crash, the more valuable the puts.
This chart represents Volt's opinion on the relative suitability of investment strategies for various situations and is not financial advice nor a guarantee of future performance.

INVEST

Prepare for the spike.

Our products make it easy to employ this spike-optimized strategy today.

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Volt Equity has partnered with Dr. David Berns, PhD (Massachusetts Institute of Technology) to develop a nuanced call option overlay strategy.

Volt employs a proprietary put selection algorithm designed by Dr. David Berns, PhD (Massachusetts Institute of Technology) to handle a variety of market drawdowns.