How We Do It

How We Do It.

"Use your long term investments to generate returns without risk."

"Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1."

Warren Buffett

Oracle of Omaha

Grow your wealth with RIVERWOOD CAPITAL

“Welcome to Riverwood Capital, where we’re all about helping you grow your money wisely. Our team of financial experts uses a blend of smart technology, in-depth research, and their years of know-how to create strategies that make your money work for you, without all the complicated jargon.

At Riverwood Capital, we focus on a smart way to make your money grow. We specialize in something called ‘Option Strategies.’ Now, these aren’t like regular stocks or mutual funds, where you put your money in and hope for the best. With Option Strategies, your money stays safe, you can make real profits, and you don’t have to lock it away for ages.

It’s a great way to grow your money without taking big risks. Riverwood Capital – where your money works smarter, not harder.”

Our Results

Account Growth

Holdings

Option's Report

Pitch Deck

Networth 2023

What are OPTIONS?

Let’s first understand Options with a fun example. When an insurance company is insuring a life for, let’s say, Rs 10,000/ p.a. premium, it is taking a bet that the insured will not die in the insurance term. But if the death takes place, the insurance company has to pay a hefty sum to the inheritor. The compensation we pay the insurance company to take this risk is the premium.

Options are just insurance contracts. A person selling an option is saying something unlikely will not happen, and a person buying an option is saying it will happen.

In the technical language, an option is a contract that allows (but doesn’t require) an investor to buy or sell an underlying instrument like a stock, an index, a currency, a commodity or any other security at a stated price also called as a premium over a certain period of time. Options are an aspect of Derivative Investments of the stock market which also include forwards, futures and swaps.

Just like the various stocks prices keep changing owing to the market conditions, similarly, Options have premium prices which too keep changing as the price of the stock, or underlying instrument changes. So when the underlying asset’s price undergoes a change, the option premium related to it too changes. The Option premium is derived from the value of the underlying security and various market factors, but it differs from its market price.

Every stock and security like commodity, currency etc has a different lot size, which consists of Options. To trade in Options, one has to buy the entire Lot size.

What is OPTION premium?

An option premium is the current market price of an option contract. The price an Options buyer pays or an Options seller receives is called the premium of an Option. The premium of an Option is directly related to change in the price of the stock or its underlying asset.

How is Options Value derived?

The overall value of an option is actually determined by six factors: strike price , the current market price of the underlying stock, dividend yield, prime interest rate, proximity to the expiration date, and the volatility of the stock prices over the course of the option.
Top three influencing factors affecting options prices:

The underlying equity price in relation to the strike price (intrinsic value)
The length of time until the option expires (time value)
How much the price fluctuates (volatility value)

What is CALL OPTION and PUT OPTION?

Call Option

A Call Option gives the holder the right to BUY an option at a certain price (known as a strike price) by a certain date (known as an expiration). An investor who buys a call option on a stock or an asset if he/she believes it will rise. Once the Call premium rises, it can be sold and profits can be booked. The trade is then a win. A Call Option is bullish in nature and is bought if the trader expects the price of the underlying to rise within a certain time frame. Just like a Call Option can be bought, it can be sold too.

Put Option

A Put Option gives the holder the right to sell the Option at a certain price by a certain date (known as an expiration). In the case of a Put, the investor believes the stock or an asset will fall, so a Put Option premium is bought. As the price of the stock falls, the premium of the Put Option rises. Once the put premium price rises, as the stock price falls, the profits are
booked and the trade is a win. In other words, a Put Option is bearish in nature and is bought if the trader
expects the price of the underlying to fall within a certain time frame. Just like Put Options can be bought, they can be sold too.

What is strike price?

Picking the right strike price is important and a key decision and that is where our expertise and our research come into play. We study the market and the stock before assigning a profitable strike price to invest in for our clients. A seasoned market analyst and watcher can figure the accurate strike price to go for. And that is our specialized service so that your Option strategy wins and brings you the gains that you aspire for. So remember, the strike price has an enormous bearing on how your option trade will play out. The strike price is one of the most important terms which every trader must know. It is the future expected price to which the stock or underlying asset can rise or fall. Each stock or underlying security has different strike prices. Each strike price has corresponding Option premiums attached to it. The strike price of an option is at which a put or call option can be exercised or bought. For Call options, the strike price refers to the price at which an underlying stock can be bought. Similarly, for put options, the strike price refers to the price at which underlying stock can be sold.

What is Option expiry date?

Unlike stocks and mutual funds, Options come with a finite life. In other words, they expire after a short duration of time. So each option contract that you buy has an expiry date. So it needs to be settled before or on the date of expiry. The expiry date is for the Option contract and not for the underlying asset or security. Therefore, Option expiry date is the second important key factor after the strike price that is taken into consideration with utmost care. This is because the expiry date decides the strike price and the premium amount. Once you have found your OPTIONS SPREAD, make sure you have the correct strike prices and have taken into consideration the expiry date.

Our Philosophy

Our goal is to create value by identifying and unlocking the breakout potential of our portfolio companies. Our internal culture of extreme transparency, relentless knowledge sharing, mutual respect, and analytical rigor is designed to rapidly translate actionable insights into investment results.

Frequently Asked Question

We follow a strict and disciplined set of principles when it comes to INVESTMENTS. Our years of experience in this field with successful and profitable returns for our clients has won us their trust and appreciation. Integrity and transparency in transactions and communications along with great profits make us the most sought after Investment firm. So let’s check out some of the most frequently asked questions by our clients here.

Will I be using my Trading Account and also be in control of it?

Yes, all OPTIONS INVESTMENTS AND TRADING would be executed through your TRADING account. Each transaction can be seen by you and you will have full control over your account as well.

Will I have a relationship manager?

Yes, you will be assigned a relationship manager who would inform you first before taking your orders. We believe in making our customers aware and knowledgeable about the stock market. We ensure that before you place the order, decide to cancel them, or book profits, your consent is sought at each step.

Do Innvestment need hugh capital?

Minimum capital required is 10 LPA.

Do I have to undertake trades every day?

No, Only few trades earn good returns over a period of time.

Do Investment carry hugh risk?

No, Investment carry the least amount of risk compared to other derivative investments. Here, capital protection is first ensured, the risk is capped and complete calculations are known before undertaking the trade.

Where are the profits from Investments deposited?

The profits that you earn with investments Options strategies are deposited directly into your account itself from where they can be paid out to your bank account upon your directed instructions.

What kind of customer support does RIVERWOOD CAPITAL provide?

As your manager, we provide you 360-degree support to enable you to place your orders efficiently in an error-free manner, check your transactions seamlessly, cancel or review your orders and anything that you may require for a comfortable trading experience. We help you to create handsome profits and also answer your queries as and when they arise.

Is it true that the risk to Investment capital is capped?

Yes, whenever a position is taken in OPTIONS Spreads, the maximum risk is known. The risk, therefore, is capped and can be avoided with the use of STOP LOSS and the guidance of an able manager.