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Option Generator
Hi there! I am Hamish Maertens, founder of Option Generator.
Our investment methodology relies heavily on quantitative analysis, risk-management and focus on the best-in-breed investments. I present these ideas to my community in the form of reports, videos, blog articles and webinars. Whether your options knowledge is intermediate, whether you're just interested in buy-and-hold, every member can grasp those actionable ideas instantaneously.
Our profound database of backtesting results, commitment to delivering unmatched transparency to our clients and proven track record demonstrate the power of our approach.
Moreover, introducing a brand new and exciting service, I now frequently schedule 1-on-1 sessions with wealthy premium members who've asked for personal meetings, trade setups and full support. Consequently, Option Generator is the only investment marketplace out there that offers solutions tailored to the needs of wealthier DIY investors. We are the most reliable investment coach in the world of options..
Option Generator publishes ideas that help individual investors find lucrative option selling strategies without getting lost in a labyrinth of jargon and risky trade setups. We have just one crystal clear mission: targeting compelling option strategies which we expect to generate returns far exceeding those of traditional investing. Our list of elite performers is the foundation for a well-diversified buy and hold portfolio. It has proven itself capable of not only outperforming the broader market, but also reducing the drawdowns considerably.
If you don't want to miss out on relevant information, you can simply subscribe to the mailing list which can be found at the bottom of this page. We also provide ideas on successful buy and hold and dividend growth investing in conjunction with option selling strategies on our blog page. Education first, then practice, then you're good to go.
Become a premium member and get access to our calculators, extensive reports, option strategy setups and real-life model portfolio for the defensive investor
Visit our blog where we provide free coaching and research articles!
Why We Don't Follow The Traditional Investment Rules and Ignore Old-School Books
We oftentimes receive the following question: "Why don't you guys implement well-known investment rules and stick to ETFs, REITs and other simple products?" The answer is pretty self-explanatory: investing ETFs is NOT strategic. It's just following the benchmark and praying for a return that exceeds the inflation rate. You solely rely upon capital gains and dividends. Of course, you should only focus on the long run and be patient, yet that's true if you're executing the right strategy. On average, 80% of investors lose money and very few of them (1%) manage to consistently beat the benchmark. Consistency and above-average returns are essentially the two keywords Option Generator stands for.
In one of our previous blog posts (July 2020) we demonstrated the impact of heightened volatility on passive investing returns. With the onset of Covid-19, future standard deviation in your P&L will be elevated compared to the historical norms. Thinking volatility is not risk but a phenomenon to take advantage of is naive. That's also the reason why investing in high-beta stocks doesn't lead to higher profits, yet the opposite is true: higher risk, lower profits.
Since June 2010, poor market timing with the MSCI USA Equal-Weighted ETF would have led to incredibly mediocre returns. By picking the worst returns, you'll end up losing about 20% of your initial capital. Achieving the median returns that a typical person would have earned takes your gain to 131%!
A lot of articles have been written about the subject called passive investing with ETFs. Many continue to bank on the 7% returns from the past, stating ETFs create easy income. There are a couple of reasons why buy-and-hold investing in a broad ETF won't work in times like these:
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Achieving inconsistent returns as shown in the article
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The sizable portion of luck (do we see another serious drawdown over the next decade and how will my nest egg be impacted?)
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Most stocks that an ETF is made up of are positively correlated with each other, especially during corrections. ETFs are thus less diversified than you would think.
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1-on-1 directional exposure leading to perfectly positive long-term correlation with the stock market
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No ways to reduce your cost-basis; in periods of increasing volatility spreading the risk through monthly investments won't lead to better results (dollar-cost averaging also loses its meaningful impact over time)
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Elevated volatility makes it difficult for most people to stay in the game
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Passive investing relies upon a decent portion of luck/randomness
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The longer it takes for the market to go up, the worse the impact on the compound story will be. Investors don't fully acknowledge the effects of a rangebound market environment, i.e., the Japanese stock market despite massive monetary stimulus. The difference between achieving an annualized 5% and 8% return becomes exponential over time.
Let's present a few features of the Option Generator's methodology:
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Selecting non-correlated assets and strategies. Equity ETFs tend to be highly positively correlated with each other, regardless of whether or not being geographically diversified. Correlation changes and so does your real risk when holding a basket of stocks
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Targeting high-probability strategies with smaller drawdowns and a narrow return distribution range
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Don't get fooled by the ideal compound effect. In reality it's a myth: no one is capable of not touching the principal (whether you're adding or taking funds out of your account, you're still leaving your portfolio to too much chance). We invest to live off our income streams, buy new properties.
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Creating consistency in your returns automatically leads to better results.
