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Institutional Derivatives: Global Derivatives

Articulate, Analyze, Structure, Execute, Manage

Pali Global Derivatives provides our clients with the ability to convert their specific viewpoints and objectives into derivative-based financial asset structures. The team will work with clients of various skill sets to work towards the client's stated objectives.

  • Global Derivatives' Greek Optimization Process is a proprietary option methodology that employs ongoing volatility management specifically designed to capitalize on the expansions and contractions of the volatility skew.
  • Global Derivatives' greatest value comes both from our understanding of volatility as an asset class that can be harnessed to achieve individual client objectives and the ability to react and adapt structures within a changing market.
  • Options involve risk and are not suitable for all investors. Options trading is considered speculative and it is possible that you may lose a portion or all of your initial investment, or funds in excess of the principal invested. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available upon request from Pali.

The Global Derivative's Process

  1. The client articulates his or her viewpoint or specific goal to the team.
  2. The client goals identified are analyzed by the team in order to determine potential strategies and structures.
  3. The team articulates the first optimal structure that they believe best fits the articulated client viewpoint for discussion with the client.
  4. Upon approval by the client the structure is executed.
  5. The team works with the client to manage initial structures which are monitored and optimized over time.

Global Derivatives Options Strategies

Global Derivatives Hedging & Global Derivatives Absolute Returns:

  • Customized trading strategies that implement the team’s Greek Optimization process.
  • Designed to either hedge a position or yield an absolute return, these strategies monetize volatility and are constructed to generate value through fluctuation in the volatility skew over time.
  • Depending on the client’s needs, these strategies can either have limited or unlimited risk profiles. Risk-Adjusted Directional.
  • Allow participation in the upward or downward movement of an underlying stock, while providing risk-adjusted return profiles unattainable solely in the underlying shares.

Protection

  • A variety of strategies employed to provide portfolio and/or individual stock protection by hedging existing equity positions with the goal of reducing the cost of hedging.

Repair

  • Options structures designed to help clients potentially recoup losses from adverse price movements in their equity holdings.

Volatility

  • Structures designed to have risk-adjusted exposure to fluctuations in volatility.

Options involve risk and are not suitable for all investors. There is no guarantee that the strategies promoted will accomplish the stated objectives. Options trading is considered speculative and it is possible to lose a portion of, all of your initial investment, or funds in excess of the principal invested. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from Pali Capital, Inc., by calling David Peebler at +1 212 259 2630, or writing him at Pali Capital, Inc., 650 Fifth Avenue, 6th Floor, New York, NY 10019. The information in this Web site is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions, which should be referred to for additional detail and are subject to changes that may not be reflected in this text. No statement within the Web site should be construed as a recommendation to buy or sell a security or to provide investment advice. The inclusion of the NASD membership in this Web site should not be construed as an endorsement or an indication of the value of any product or service.