A Note to Our Readers: The post below was originally written as personal monthly letters to our Charter Asset Management clients from our CEO, Jesse Anderson. We have modified them slightly to share important insights with the entire Snider Advisors community.
A Strong Second Quarter for the Snider Investment Method
The second quarter of 2026 was another successful period for the Snider Investment Method. While the market experienced its share of uncertainty, our disciplined approach continued to produce consistent income while managing risk. Here’s a look back at how the quarter unfolded.
April: Turning Market Strength into Opportunity
April’s headlines were dominated by geopolitical tensions and fluctuating oil prices, yet the market proved remarkably resilient. Rather than focusing on the rapid recovery, we took advantage of the favorable conditions in two important ways.
We successfully closed more than 20% of our open positions at expiration, locking in strong capital gains while freeing up capital to invest in new income-generating opportunities. At the same time, the cash portion of our portfolios grew to near-record levels. Holding additional cash during strong markets allows us to reduce equity exposure while remaining prepared to invest when prices become more attractive. It’s a disciplined approach that naturally encourages buying low and selling high.
May: Benefiting from Earnings Season
May delivered another solid month of income generation, with average net income across managed portfolios coming in just over 12% annualized.
Earnings season created higher-than-normal market volatility, which is often beneficial for option sellers. While some investors avoid holding positions through earnings announcements, we take a long-term perspective. By focusing on fundamentally strong companies, we’re comfortable looking beyond short-term price movements and instead seek to benefit from the larger option premiums that higher volatility can provide.
June: Multiple Income Streams Working Together
June’s results closely mirrored May’s, with average net current yield once again exceeding 12% annualized. Although option premiums were about 15% lower than the previous month, strong capital gains, dividend income, and interest on cash reserves more than made up the difference.
This serves as a valuable reminder that while option premiums remain the cornerstone of the Snider Method, they are not our only source of income. Our strategy is designed with multiple income streams that work together to provide consistency across changing market conditions.
Looking Ahead
The second quarter demonstrated exactly what the Snider Method is designed to do: generate steady income while maintaining a disciplined approach to risk. Favorable market conditions certainly helped, but our confidence comes from the structure of our portfolios, including the quality of the companies we own, thoughtful position sizing, and prudent cash management.
As we move into the second half of the year, we’ll continue following the same proven process rather than reacting to short-term market headlines. Thank you for the continued trust you place in us. We appreciate the opportunity to help you pursue your financial goals and look forward to the months ahead.