Option overlays are increasingly becoming part of Advisors’ toolkits, in part out of necessity. With fixed-income yields near the lowest in generations, and equities well-advanced into a bull market, Advisors need new ways to provide their clients with income, risk-reduction that doesn’t trigger capital gains liabilities, as well as potential new sources of alpha and return.
Potential Benefits of Option Overlay Strategies
Option Premiums may serve as a supplement to income generated from fixed-income yield and stock dividends.
Reduce Risk w/o A Current Tax Liability
Options can reduce portfolio risk without triggering a capital gain the way that selling equities may.
Historical Source Of Alpha
Extracting the persistent difference between implied and realized volatility has historically provided an increase in risk-adjusted returns.
Differentiate your practice, while managing the risk of your clients' portfolios with option overlays and SpiderRock Advisors
Modernize your approach to risk. Work with dedicated experts.
Enhanced Portfolio and Targeted Income
Real-time Asset Hedging
Differentiated and Customized Services
Potentially Improved Risk-Adjusted Returns