Quantum Options Liquid Model (QLOM)

Introduction

The Quantum Options Liquid Model (QLOM) is a high-yield, low-risk options trading strategy designed for Ultra HNI investors seeking consistent alpha with controlled drawdowns. By leveraging volatility decay, advanced risk-adjusted allocations, and automation, QLOM ensures optimized capital efficiency and long-term wealth compounding.

Key Features

1: Traded Instruments

NIFTY, BANKNIFTY, MIDCAPNIFTY, FINNIFTY, SENSEX.

2: Risk Control

Max 3.5% drawdown over 12 months, with an average recovery period of 15 days.

3: Execution Framework

Automated, rule-based capital adjustments and continuous strategy refinements.

4: Returns

25-30% annual returns managed through a structured intraday options selling approach.

5: Operational Model

Entry at 10:00 AM IST, exit by 3:15 PM IST, ensuring efficient capital deployment across instruments.

6: Real-Time Monitoring

Live tracking, stop-loss triggers, hedge adjustments, and automated alerts for precision execution.

 

Benefits

  • Consistent Monthly Returns: A systematic approach to capturing market inefficiencies.
  • Controlled Risk Exposure: Strict drawdown limits ensure capital preservation.
  • Fully Automated Execution: Eliminates manual errors and enhances efficiency.
  • Optimized Capital Allocation: Equal distribution across instruments for better diversification.

 

 

Use Cases

  • HNI Portfolio Optimization: Enhancing portfolio yield with systematic options selling.
  • Risk-Managed Option Selling: Generating consistent returns while controlling drawdowns.
  • Automated Trading for Institutions: Deploying fully rule-based strategies with real-time monitoring.

Our Methodology

  • Market Data Analysis: Continuous monitoring of volatility and liquidity trends.
  • Trade Selection: Identifying optimal entry points based on volatility decay patterns.
  • Automated Execution: Rule-based order placements for precision trading.
  • Risk Management: Implementing stop-loss mechanisms and hedge adjustments.
  • Performance Optimization: Dynamic strategy refinements for consistent returns.
  • Live Monitoring: Real-time tracking with alerts for proactive decision-making.

Tools & Technologies

  • Programming Languages: Python, SQL
  • Analytics & Backtesting: Pandas, NumPy, SciPy, Backtrader
  • Cloud Platforms: AWS, Azure for real-time execution and monitoring
  • Broker APIs: Integration with platforms of Jainam and Zerodha
  • Visualization Tools: Tableau, Power BI for reporting and performance tracking


Business Cases

1: High-Net-Worth Portfolio Optimization

Challenge: An Ultra HNI investor sought a low-risk options trading model with high returns and controlled drawdowns.
Solution: Deployed QLOM with volatility-based risk-adjusted allocations.
Result: Consistently achieved 25-30% annual returns while maintaining risk within defined limits.

2: Automated Strategy Execution for Institutions

Challenge: Manual execution led to delays and inefficiencies in deploying capital across multiple instruments.
Solution: Implemented fully automated trade execution with real-time monitoring and hedge adjustments.
Result: Seamless execution with precision risk management, ensuring capital efficiency.

Client Testimonial

“The Quantum Options Liquid Model has transformed our trading experience offering consistent monthly returns, strict risk control, and an entirely automated execution framework.”
— Ultra HNI Investor

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