Worth Charting ETF Seeks 9–12% Returns With 93% Expiration Odds
VALU•Worth Charting Options Income ETF (WRTH) uses a probability-stacking short-strangle strategy with four filters to boost expiring-worthless odds to ~93%. The fund targets annual returns of 9–12% with maximum drawdowns under 6%, employing 40 equal-weighted positions and T-bill collateral for conservative income.
1. Strategy and Probability Filters
The ETF sells short strangles by writing both calls and puts 10%+ out-of-the-money on large-cap stocks post-earnings. Four compounding filters—large caps, 10%+ OTM strikes, short-dated options, and post-earnings events—push the baseline 70–75% odds of expiring worthless to approximately 93%.
2. Risk Management and Hedging
The fund holds 40 equal-weighted positions and parks cash collateral in Treasury bills to secure obligations. Far out-of-the-money calls serve as tail hedges, capping maximum drawdowns under 6% and enabling the strategy to absorb shocks without taking directional views.
3. Performance Targets and Positioning
WRTH aims for S&P-like annual returns of 9–12% with no down years, positioning itself as a conservative sleeve for income-focused capital. Its low correlation to equities and bond-like risk profile offers an alternative to fixed income or covered-call funds.
