NORTHBROOK, Ill., Jan. 22, 2016 /PRNewswire/ -- IRON Funds announced the launch of the IRON Equity Premium Income Fund (NSDQ: CALLX, CALIX) on October 30, 2015. The objective of the Fund is to provide superior risk-adjusted total return relative to the CBOE S&P 500® BuyWrite Index (BXMSM) by utilizing an actively managed options overlay strategy on the underlying exchange traded index fund.
The Fund has several unique features. It utilizes an exchange traded index fund to maintain the core equity exposure thus eliminating the need for holding individual stocks and associated single name risk. IRON's Equity Premium Income Fund will write call options that are out-of-the-money, and up to 60 calendar days to expiration. The number of written call options may correspond to a fully covered underlying position thus avoiding margin and additional options' leverage. The Fund limits option moneyness when the underlying trades above the option strike price thus allowing the underlying to appreciate better during rising markets. It does not utilize put options and hence maintains a true covered call structure.
"Our investment strategies are developed using quantamental approaches and follow a disciplined process – seeking to deliver consistent results and eliminate biases." said IRON Managing Director of Investment and Quantitative Research Dr. Ramesh Poola, Ph.D., CFA.
About IRON Financial
IRON Financial provides asset management strategies and solutions to financial intermediaries and institutions (and is the investment advisor to the Fund – IRON Funds) across core and alternative asset classes. Founded in 1994, IRON's mission is to provide investment strategies that help mitigate risk, generate attractive relative returns, and help financial intermediaries, foundations, and institutions preserve and grow capital. For more information, please visit www.ironfunds.com
No investment strategy, including a total return strategy, can ensure a profit or protect against loss. Option writing may limit the amount of capital appreciation, especially in a rapidly rising stock market. The short-term return profile might be unattractive; hence this strategy is not suitable for shorter-term investment horizons. The CBOE S&P 500 Buy-Write Index (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index.
You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund's prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fund's prospectus by calling 1-877-322-0575. Distributed by Unified Financial Securities, LLC.(Member FINRA).
SOURCE IRON Financial