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PTI Securities & Futures LP
  ............ 800.821.4968
 
   

Investment Professionals - for the Professional Edge

   
 
Welcome to PTI Securities & Futures LP. We cater to all investors by offering superior trading and money management services.
View the history of PTI Securities, management credentials, branch offices, news, and valued service partners.
The Protected Index Program provides portfolio diversification and protection, all within the individual client's customized risk profile.
For self-directed, independent traders who do not require broker assistance, PTI ProDirect offers the lowest online rates in a sophisticated platform.
Place your trades by phone. PTI's expert brokers have over ten years on the trading floor and will answer your call by the third ring.
We offer investment education through seminars, teleconferences, a weekly newsletter, and Tom Haugh's financial blog, DOLLAR$ and SEN$E.
Contact us by phone, fax or e-mail. PTI brokers are available Monday - Friday, 7:30am until 4:30pm Central Time. Toll Free 800.821.4968.
Contact Dan Haugh at 800.821.4968 for a consultation.. .  Track Record  .  PIP FAQs  .  Commissions     Education
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.No Management Fees and No Inactivity Fees

Over the past several years investors saw significantly diversified market conditions. These highly volatile markets may have caused some jubilation when you reviewed your monthly brokerage statements. But many long term investors spent the past 5 years cringing in fear as they opened the envelopes. And many investors now have a drawer full of unopened envelopes - they don't even want to look.

PTI Securities & Futures clearly understands the struggles facing investors today. But there are alternatives to negative returns - and our Protected Index Program® is one of them. We have been utilizing this successful investment strategy for over a decade and our track record reflects that we have beaten the S&P 500 during this time by upwards of 31.95%. We have also beaten the Russell IWM by upwards of 32.71% since its inception as well!

What is the key to the success of the Protected Index Program®? The answer is twofold, we are diversified and we are protected. The diversification comes by the investment in unit investment trusts, which are trusts comprised of large baskets of stocks. For example, the Spyder's, or SPY's, is a trust including all the stocks with the proper weightings of the S&P 500. The protection comes from always having a long term put, or LEAP, in place limiting the risk of a downside move in the underlying.
Investment Process & Money Management Principals
 
Thomas P. Haugh
Title: Chief Investment Officer
Years With Firm: Since 1991
Education: BA - Notre Dame University, MBA - University of Chicago
Registration: Series 3, 4, 7, 24, 53, 63 and 65
Daniel J. Haugh
Title: President
Years With Firm: Since 1991
Education: BBA - Notre Dame University, MBA - DePaul University
Registration: Series 3, 4, 7, 24, 27, 63 and 65
Robin Spitalny
TItle: Money Manager / VP New York Office
Years With Firm: Since 1991
Education: BBA - University of Michigan, MBA - Northwestern University
Registration: Series 4, 7, 24, 63 and 65

 

 

 

PTI has a strategy to achieve diversification in customer accounts of even modest amounts through the use of exchange traded unit investment trusts. These trusts trade like individual stocks all day, but really are trusts containing the entire basket of stocks making up a particular index. For example, the SPY, or Spiders, is a basket of all the stocks making up the S&P 500. The QQQ is a basket of all the stocks contained in the NASDAQ 100. In one trade we can achieve the diversification that is otherwise very difficult to achieve in individual customer accounts. We look to further the diversification process by using a blend of the S&P 500 and the QQQ. Unlike traditional mutual funds, the exact content of the trust is always known, and there are no hidden tax issues.

The second issue evident by the recent stock market history is the need for protection either from general market declines or random shocks like the events of September 11. It becomes painfully obvious by talking to wide groups of investors that not enough analysis and hedging of market risk was undertaken by the average investor. The question was not asked or answered often enough “How does your portfolio look and how would your life-style change if Cisco was to go back to $15 per share?” Despite repetitions of tired clichés like “I am in for the long haul,” or “I don’t worry about the price, I am a buy and hold guy,” most investors are not happy with portfolio declines of much more than ten percent.
Portfolio Construction
 

How can this protection, or insurance, be achieved? The development many years ago of long-term options on individual stocks and indices, called LEAPS, has provided a cost-effective way for providing continual price insurance for stocks or portfolios. Prior to their development, the insurance costs in terms of dollars per day for using traditional short-term options was too excessive for continual use. The non-linear dollar decay curve of long-term options allows the dollars per day insurance costs to be acceptable for long-term use. PTI firmly believes that the only way for an investor portfolio to be protected is to actually be safeguarded by put insurance. Trusting an advisor or manager to spot the bumps in the road or general overvaluation and act in time was always expecting too much, as recent events have clearly shown.

An additional part of the PTI strategy is the sale of near-term out-of-the-money call options as a way to pay for the cost of the long-term put insurance. The same non-linear way that long-term options decline in value relatively slowly causes near-term options to decay rapidly. In fact, it is often possible and is our goal to pay for the insurance cost long before the insurance expires.

How is this strategy going to work, both short and long-term? On a short-term basis the fund should perform as follows.

  • The fund will significantly out perform the various averages in decreasing markets, both due to the put protection and the net call premium. The initial total risk in the portfolio is generally less than ten percent.
  • The fund should out perform the averages in periods of small market movement, as the decay in the short call is greater than the decay of the long put
The fund will under perform the averages in any month where prices appreciate more than the percentage out of the money of the calls sold. For example, if the calls sold were four percent out of the money, the strategy will begin to under perform if the averages appreciate more than four percent that month.

Sample Portfolio Unit:

The goal is to diversify the investment through the use of exchange traded unit investment trusts. Currently there is an ever increasing number of these products, but the most liquid are the SPY, containing the stocks of the S&P 500, and the QQQ, containing the stocks of the NASDAQ 100. We are also watching the growth of the CBOE’s new OEF product, containing the stocks of the S&P 100, as it may have advantages for the future.

In addition to the diversification achieved by the unit investment trust itself, we further that by using more than one trust. Along with the purchase of the trust shares, PTI selects through its proprietary timing model the optimum combination of long-term put insurance and shorter-term call sale. This model takes into account various factors, such as implied volatilities, interest rates, recent market moves, etc. In most cases the combination of the put and call will be selected to limit total risk on the initial investment to 10% or under. As the program advances this risk number will decrease as a percentage of the initial investment.

Long Term Objective:

On a long-term basis we believe that this strategy will equal or exceed the long-term return of the market averages, with much less total risk to the portfolio and much less month to month volatility. As such we believe this to be a superior core strategy for a wide range of individual and institutional investors.

 
 
 
 
SPX
PIP
Cumulative since inception March 1998
+ 21.38% + 53.33%
Year-To-Date
+ 23.94% - 0.41%
1 Month
+ 5.75% + 0.36%
1 Year 
+ 24.91% - 0.63%
3 Year
- 16.08% + 5.30%
5 Year 
+ 4.01% + 22.81%
10 Year 
- 6.08% + 27.72%
PIP Performance indicates gains cumulative since inception of March 1998, YTD, 1-month, 1, 3, 5, and 10-year records ending November 30, 2009, that the PIP produced consistent returns in a hedged portfolio.
 
This track record is derived from the actual returns of the largest accounts using the S&P 500 (SPY) and reflects the return of over 30% of the assets invested in the Protected Index Program (PIP) using the SPY. Multiple accounts are included in the track record to reflect the fact that any one account may have a slightly different put or call strike (or both) on any given month due to market conditions when the accounts were invested. PIP returns are inclusive of all costs. This return represents the average return achieved by amounts invested in the S&P 500 Protected Index Program over the time frame indicated. The return is based on cash invested and uses no leverage or borrowed funds. For the first several years of the track record, accounts were advised on both a discretionary and a non-discretionary basis. Although PTI was responsible for making investment recommendations to non-discretionary accounts, they were free to accept, reject or modify those recommendations and had ultimate decision-making authority. Such decisions by the client could have impacted the performance. Currently all accounts included in this track record are managed by PTI. Returns in the composite do not include the reinvestment of dividends, interest and cash generated from covered calls writing, and if all accounts did include reinvestments, this would slightly increase the performance. The investment performance of any individual portfolio may have been better or worse over this period than the results shown herein. By presenting the composite performance, no representation is made that any particular portfolio or group of portfolios had precisely this performance. Past performance is no guarantee of future results.
 
PIP Track Record and Performance Chart (PIP vs. IWM)
 
 
IWM
PIP
Cumulative since inception July 2005
- 9.41%
+ 23.30%
Year-To-Date
+ 18.92% + 2.37%
1 Month
+ 2.95% + 1.36%
1 Year 
+ 24.46% + 4.24%
3 Year
- 22.46% + 10.43%
PIP Performance indicates gains cumulative since inception of July 2005, YTD, 1-month, 1, and 3-year records ending November 30, 2009, that the PIP produced consistent returns in a hedged portfolio.
 
This track record is derived from the actual returns of the largest accounts using the Russell 2000 (IWM) and reflects the return of over 25% of the assets invested in the Protected Index Program (PIP) using the IWM. Multiple accounts are included in the track record to reflect the fact that any one account may have a slightly different put or call strike (or both) on any given month due to market conditions when the accounts were invested. PIP returns are inclusive of all costs. This return represents the average return achieved by amounts invested in the Russell 2000 Protected Index Program over the time frame indicated. The return is based on cash invested and uses no leverage or borrowed funds. All accounts included in this track record are managed by PTI. Returns in the composite do not include the reinvestment of dividends, interest and cash generated from covered calls writing, and if all accounts did include reinvestments, this would slightly increase the performance. The investment performance of any individual portfolio may have been better or worse over this period than the results shown herein. By presenting the composite performance, no representation is made that any particular portfolio or group of portfolios had precisely this performance. Past performance is no guarantee of future results.
 
 

As a PTI Securities & Futures client, yes, the money remains in your account.

After consultation with the client, a mutual decision will be reached to determine which indexes to buy.
After consultation with the client, a decision will be reached to determine the degree of protection desired as well as the appropriate put strike to buy.
There are no management fees or inactivity fees for accounts held at PTI Securities & Futures, just the standard broker-assisted trading commission fees apply. See commission rates below.
Either Tom Haugh or Dan Haugh will be managing your account.
Yes, you will be able to access your account online through PTI's e-View system.
The suggested account minimum is $75,000.
As long as you have an IRA account that allows protected puts and covered calls. IRA accounts at PTI Securities & Futures (utilizing the Delaware Charter Agreement) may elect to utilize this management program.
The amount of initial risk (customized to the needs of the individual client) is typically in the 8-12% range.
PTI Securities is a member of Securities Investor Protection Corporation (SIPC). Together with Mesirow Financial Inc., PTI has purchased excess SIPC coverage to insure each account for an additional $29.5 million in securities.
Contact Dan Haugh toll free at 800.821.4968 to discuss your risk profile and investment goals, then click
 
 
No management fees. No inactivity fees.
Stock & Index Options...
$5 Per Contract
$45.00 commission minimum
Stock...
5¢ Per Share
$45.00 commission minimum
Rates Effective 7-19-04
 
 
...PTI Securities & Futures LP .....411 S. Wells Street, Suite 900, Chicago, IL 60607..... P. 800.821.4968 .....F. 312.663.3058
Options involve risk and are not suitable for all investors. Copyright © 2010 PTI Securities & Futures LP .|. Member SIPC NFA FINRA