Risk Disclosure
Important information about investment and trading risks
WARNING: Options trading and portfolio investing involve substantial risk of loss and may not be suitable for all investors. Past performance, including backtested results, is not indicative of future results. You should only invest or trade with capital you can afford to lose.
General Risks
Investing in ETF portfolios and options strategies involves significant risks, including but not limited to:
- Loss of Capital: Both ETF investing and options trading can result in significant losses, up to and including the complete loss of your investment.
- Market Risk: Adverse market movements can cause significant losses across all asset classes, especially during periods of high volatility or economic downturns.
- Leverage Risk: Options provide leveraged exposure, amplifying both gains and losses beyond the initial capital deployed.
- Liquidity Risk: During market stress, positions may be difficult to close at favorable prices.
- Concentration Risk: Portfolio allocations may result in concentrated exposure to specific sectors, asset classes, or market conditions.
Strategy-Specific Risks
The ETF rebalancing and 0DTE (zero-days-to-expiration) options overlay strategies involve additional risks:
- Backtested Performance: The ETF rebalancing strategy's historical results are based on backtested data from 2011-2026. Backtested results have inherent limitations: they are designed with the benefit of hindsight, do not reflect actual trading, and may not account for all market conditions or transaction costs.
- Extreme Gamma Risk: Same-day options have maximum gamma sensitivity, causing rapid P&L changes in the 0DTE overlay.
- Time Decay Acceleration: Options lose value rapidly as expiration approaches.
- Gap Risk: Market gaps can cause losses beyond stop-loss levels.
- Assignment Risk: Short options positions may be assigned, requiring immediate action.
- Technology Risk: Automated systems may fail, resulting in missed trades or incorrect execution.
- Rebalancing Risk: Portfolio rebalancing signals may not always be timely or optimal in rapidly changing market conditions.
Performance Risks
- Past performance does not guarantee future results.
- Backtested returns are hypothetical and were not achieved through actual trading.
- Historical returns may not be achievable in future market conditions.
- Return targets are goals, not guarantees, and actual results may differ materially.
- Drawdowns can exceed historical maximums during unprecedented market events.
- Strategy performance may degrade as market structure changes or as strategies become more widely adopted.
Community & Education Risks
- Information provided in the community is for educational purposes only and does not constitute personalized investment advice.
- Trading signals and portfolio allocations are shared for informational purposes; you are solely responsible for your own trading decisions.
- No community member, moderator, or content creator is a registered investment advisor unless explicitly stated.
- Results shared by community members may not be representative of all members' experiences.
Operational Risks
- You maintain full custody of your brokerage account at all times.
- Automated 0DTE execution requires granting limited trading authority on your account.
- A margin account with sufficient capital (~$40,000+) is required for the 0DTE overlay on SPX options.
- Brokerage fees, commissions, and margin interest may reduce returns.
- Tax implications vary by jurisdiction; consult a tax professional.
No Guarantee
This website and all materials are for informational and educational purposes only and do not constitute an offer to sell or a solicitation of an offer to buy any security. No representation is being made that any account will achieve profits or losses similar to those discussed. The content is not personalized investment advice. You should consult with a qualified financial advisor before making any investment decisions.
Last Updated: February 2026