Option overlays are fast becoming part of many advisors’ tool kits, and for good reasons. We believe that option overlays provide a consistent means to achieving higher risk adjusted returns, enhanced yields, and lower portfolio volatility.

 

Potential Benefits of an Option Overlay Strategy

Risk
Management


Seeking to maintain exposure to the equity markets and dividend streams while lowering portfolio volatility.

Contrarian
Benefit


Enabling investors to increase exposure as markets fall, while reducing exposure as markets rally.

Alternative


Complementary to existing portfolios, targeting uncorrelated and repeatable sources of returns.


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Can provide superior risk adjusted returns from market exposure and selling option premiums.

 

 

Harvesting premiums from index and single stock options can potentially supplement portfolio dividends which may exceed the total return from equities.

 

Can mitigate market losses, resulting in declines that may be less severe than a long-only or unhedged portfolio.


When you work with SRA, you have access to multiple innovative and effective option overlay strategies. All positions are transparent, liquid, and non-disrupting to underlying account portfolios. The options are traded automatically and directly within client accounts at your chosen broker and custodian.


Differentiate your practice, while protecting the risk of your client portfolios with option overlays by SpiderRock.

 

Modernize your approach to risk. Work with dedicated experts.

Advantages:

Enhanced Portfolio and Targeted Yields
Real-time Asset Hedging
Differentiated and Customized Services
Optimized Risk Adjusted Returns
Customized Reporting