Horizon International Equity ETF (FRGN)

Overview

FRGN is dedicated to achieving capital appreciation through strategic investments in non-US companies, encompassing a wide range of market capitalizations in both developed and emerging markets. The investment selection process is grounded in comprehensive economic, quantitative, and fundamental analyses. By focusing on various factors such as growth, value, momentum, quality, size, and volatility, FRGN aims to optimize expected returns while maintaining an acceptable level of risk.

The fund adopts advanced tactical options strategies to enhance its investment approach. This includes utilizing FLEX options and implementing put spreads on broad-based indices or ETFs to create income opportunities while simultaneously safeguarding against potential losses through protective long puts. FRGN's versatility allows it to explore a broader spectrum of options trading strategies, adapting to market conditions and investor objectives.

Products and Services

• FLEX Options:

  FRGN employs FLEX options to provide flexibility in executing various strategies designed to enhance portfolio returns. These options allow for targeted risk management and income generation through their unique customizable features.

• Put Spreads:

  The fund uses put spreads on broad-based indices or ETFs, which offer a way to generate income while mitigating the risk of losses. This strategy involves buying and selling put options at different strike prices, allowing for a balanced exposure to market declines.

• Protective Long Puts:

  To limit potential losses, FRGN incorporates protective long puts within its strategy. This involves purchasing put options to provide downside protection, ensuring that the fund can safeguard its investments during adverse market conditions.

• Single-Stock Options:

  FRGN may engage in single-stock options trading, allowing for precise management of individual stock exposures. This includes both speculative and income-generating strategies tailored to specific equities.

• Covered Calls:

  The fund can utilize covered calls as a way to enhance income by selling call options on stocks it already owns. This strategy is designed to generate additional returns while still maintaining upside potential on the underlying stock.

• Cash-Secured Puts:

  This strategy involves selling put options while holding the cash necessary to purchase the underlying stock. It allows FRGN to generate income while maintaining a position to acquire shares at an appealing price if the option is exercised.

• Spreads:

  FRGN may execute various spread strategies, which involve buying and selling options to capitalize on differing market expectations. These strategies can help manage risk while aiming to maximize returns through opportunities in volatility.

• Straddles and Strangles:

  These strategies are utilized to capitalize on significant price movements in either direction. By purchasing both calls and puts, the fund is positioned to profit regardless of market direction, provided the price movement exceeds predefined thresholds.

• Collars:

  FRGN may implement collars to protect against potential losses while capping upside gains. This strategy typically involves holding a stock and simultaneously buying protective puts while writing calls, creating a defined risk-reward profile.

• Naked Options:

  The fund may also engage in naked options trading, which involves selling options without holding an offsetting position. This strategy represents a higher-risk approach aimed at generating immediate income from premiums collected.

While these options strategies are designed to outperform in stable or rising markets through net premium gains, they may encounter challenges during market downturns, particularly with losses limited below the strike price of purchased puts. Importantly, FRGN is not restricted in the number or size of options transactions and is prepared to engage in frequent trading to leverage market opportunities.