robocar disruption

Autonomous driving + convexity

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

EXPLORE CONVEXITY ETFs
by the numbers
Tesla exposure
25% (15% stock, 10% options)
Index exposure
73%
Test DRive

Theoretical Backtest

Play around with how a theoretical 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, the leading autonomous vehicle disruptor we've identified.

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 sector put options

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

Finish with methodically selected put options to mitigate severe tech sector crashes.

Small footprint. Massive power.

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 exploit 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

A breakthrough in autonomous driving technology would have massive implications for society.

Because of Tesla's tech and data advantage, we believe they are the runaway leader in the race to solve autonomous driving. If Tesla cracks the autonomy problem, we believe it could cause a violent upward spike for their stock.

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 similar spike-optimized strategies through options

EXPLORE OUR ETFs

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.