Your hedged, actively managed core derivative portfolio

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01. Features

Short-term derivatives backed by sophisticated hedging strategies.

Quant-based strategies

Investments in Arbor are made taking into account market data and other quantitative aspects.

Market Neutral

Investments in Arbor are market neutral and see minimal impact from any short-term volatility in the market.

Income Generating

Generate periodic income thanks to the short-term and adaptive nature of the strategies.

02. Strategies

A strategy for every market

Our strategies are adaptive to most market conditions.

Theta Decay
Also known as time decay, these option writing strategies benefit from the falling option prices toward expiry of contracts.
Vega Crush
Markers oscillate between high and low volatility phases, which is measured by vega. Selling options for a higher premium in high vega environment helps you capture profits as markets stabilse, irrespective of it's direction.
Volatility Dispersion
A dispersion trade helps benefit from a substantial difference in the volatility of an index and one of it's major components. This is a type of correlation trading as trades are usually profitable in a time when the individual stocks are not strongly correlated.
Calendar Spreads
These are options trades that are spread simultaneously between two different months; entering a long and short position on the same underlying asset but different expiries. Calendar spreads carry lower margins.
Delta Neutral
Delta neutral strategies are options strategies that are designed to create positions that aren't likely to be affected by small movements in the price of a security. This is achieved by ensuring that the overall delta value of a position is as close to zero as possible.
Equity Hedged Options
Often times these strategies are used to benefit from a falling market but hedging upside risk by going long on equities and short on options.
03. Things you need to know

Here are some more details

Derivative trading is sophisticated. Here's what you need to know.

What is the minimum investment and what are the instruments used?

The minimum investment is 5 lakhs and we invest majorly in index options, futures and equities.

Are equities held for a long time?

No, equity trades in Arbor are designed to be short term and benefit from short term trends in stocks. Some of the strategies used involve a mix of both equities and derivatives. In order to boost returns, equities held in your account are collaterlized and the margin released by the broker is used for derivative trades.

Is derivative trading risky?

Futures and options have an inherent risk because of the leverage built into derivatives. However, derivatives also help you control your risk using different types of hedging techniques.

How are derivatives taxed?

Derivative income is considered as income from non-speculative business and taxed under the head 'Income from Business'. Generally derivatives are taxed as per your tax slab. Gains from short term equity trades are taxed at fifteen percent. But there's more to it.

Read more about taxation

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