Structural Logic’s Gold Covered Call Writing program is a unique managed futures strategy that involves a combination of long gold futures contracts and short gold call options. This gold covered call program has one “beta” component, and two “alpha” components. Academic research has shown that the majority of managed funds (over 80%) returns are attributable to market-driven “beta” strategies, with the remaining portion of the returns being derived from “alpha” strategies.
For the “beta” component, the Advisor intends to maintain a perpetual long futures position by rolling the front month futures contract forward to the deferred month futures contracts. Maintaining a perpetual long-only gold futures position by rolling the futures contract forward to the deferred futures contracts offers investors a “beta replication” approach to owning physical gold.