Anacapa’s rapid-fire options strategy hits the target

Investment firm’s novel take on volatility selling avoided big drawdowns in 2020 and 2022

The founder of Anacapa Advisors, Phil Pecsok, says his firm’s short volatility strategy is as straightforward as selling car insurance, albeit with a much higher turnover.

Systematic options selling strategies like Anacapa’s have historically been a risky business. But Pecsok says his version is conservative, employing no leverage beyond what’s inherent in the options the firm trades.

So far, it seems to be working. Anacapa’s Alpha fund – benchmarked to the S&P 500 – has delivered five percentage