How One Company With Decades Of Experience In Volatility Trading Helps Investment Advisors In One Of The Most Specialized F&O Trading Arenas

March 11, 2024 at 09:25 AM EDT

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By Austin DeNoce, Benzinga

Equity Armor Investments is a wealth management and advisory firm that has positioned itself at the center of the complex volatility trading market. Volatility in trading is the measure of how much a stock or asset has changed in value over a set period of time, where price action is the measure of volatility. To some, the topic of volatility may be a non-starter, but Equity Armor offers a different approach to wealth management with its niche expertise in the pulse-pounding world of volatility futures and options trading. Steered by a dynamic trio of Cboe Global Markets, Inc. (BATS: CBOE) market makers – Brian Stutland, Luke Rahbari and Joe Tigay – this firm is a powerhouse of over 70 years of collective market wisdom and proficiency in the art of volatility trading.

The Team Leading Equity Armor

At the helm of Equity Armor Investments is Chief Executive Officer Luke Rahbari, who brings a vibrant track record of trading alongside North America's volatility and overlay titans. With a rich background of over 25 years in equities, equity derivatives and structured products, Luke's journey includes launching and exponentially growing TD Bank’s U.S. Institutional Equity Derivatives desk, transforming it into a billion-dollar juggernaut in U.S. equity indices and names. Brian Stutland, the Chief Investment Officer, is also no stranger to innovation. With roots in the LETCO group at the Chicago Board Options Exchange (CBOE), he ventured into volatility index futures and options, pioneering positions that set the stage for a new era in volatility trading. By 2006, his foresight and expertise had firmly established him as a leading figure in the VIX Volatility futures and options space.

Meanwhile, Chief Trading Officer Joe Tigay has carved out his niche through a hands-on journey from clerk to member trader at the CBOE. His expertise spans across making markets in VIX options to trading equities as a remote market maker, showcasing his adaptability and strategic insight in the world's largest open outcry trading pit. Together, this triumvirate of visionaries collaborated on a VIX hedge fund and now spearhead Equity Armor, a firm that thrives on navigating the complexities of volatility futures. Their world-class expertise uniquely positions them in the high-stakes game of trading long volatility through futures.

What Sets Equity Armor Apart?

The key to Equity Armor’s success is its innovative trading strategy, which is a blend of sophisticated financial instruments and analytics aimed at maximizing returns while maintaining a strategic balance of risk. The firm excels in leveraging volatility futures to its advantage, capitalizing on the market's ebb and flow to enhance portfolio performance, even during market drawdowns. Through a combination of stocks and volatility futures, Equity Armor thoughtfully navigates the market's shifts, aiming to profit from the rise and fall induced by volatility.

The firm’s strategy is a testament to its goal of minimizing risk and drawdowns, demonstrating a proactive stance in safeguarding investments against market downturns. The firm's daily rebalancing acts as a safeguard against the pitfalls of holding volatility contracts for too long, ensuring its strategy remains focused on delivering conservative yet effective returns. Its deep market knowledge and protective trading strategies are designed to shield and grow investments, reflecting its commitment to client success.

Mastering The Market Of Fear For Clients

At the core of Equity Armor's trading arsenal is the CBOE VIX, the "fear index," which is a critical gauge of market volatility. The VIX's role has been pivotal, especially in helping navigate the turbulent waters of the pandemic and post-pandemic market. The Catalyst Nasdaq 100 Hedge Equity Fund (MUTF: CLPFX) is a prime example of its success, ranking in the top 3% in its category on Morningstar in 2023. The CLPFX fund is a cornerstone of Equity Armor’s portfolio, reflecting the strength of its strategies and commitment to providing the best products on the market.

This expertise is further extended through its OCIO services, which provide a lifeline to investment advisors looking to harness Equity Armor's trading abilities. Equity Armor's OCIO service is a bespoke offering that allows registered investment advisors to flourish under its guidance. Tailored to each client's needs, it provides access to a team with decades of experience in one of the most specialized trading arenas, ensuring registered investment advisors have the support they need to thrive in the futures and options market.

*Disclaimer: as with any investment, strategies include potential risk of loss.

Equity Armor Investments is an wealth management firm offering advisory services to individual and institutional investors through proprietary funds, managed futures strategies, and outsourced advisory solutions. Equity Armor Investments empowers investors with volatility-aware strategies to shield portfolios from downturns and boost returns. We blend deep options expertise with fundamental analysis to craft bespoke solutions for individuals and institutions.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

Unless specifically indicated, the information contained herein does not constitute an offer by Equity Armor Investments to buy or sell any product. Investors should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.