Hedged Equity Concentrated Stock

Enter the information below to receive a customized proposal on how SpiderRock Advisors Hedged Equity Concentrated Stock program can potentially generate income and reduce volatility without triggering capital gains.
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Problem

Clients have concentrated positions with low cost bases which they are reticent to sell due to significant tax consequences.

Solution

Using SRA's Hedged Equity - Concentrated Stock program, you can reduce the risk inherent in concentrated positions, while generating income and avoiding tax consequences.

Highlights

  • Protect concentrated stock in a tax efficent manner
  • May increase total return and reduce portfolio volatility
  • Single stock & index options
  • Liquid strategy traded directly in your client accounts
  • Non disruptive to the underlying portfolio 
The SpiderRock Advisors Hedged Equity Concentrated Stock options overlay strategy does not protect from downside risk. The downside risk protection benefit of a call writing strategy is limited to the amount of the premium received. • Portfolio holdings may need to be sold to generate cash to settle options. Such sales may produce tax consequences. • Investors must be willing to forgo potential upside appreciation above the premium value in exchange for the incremental income. • Past performance is not a guarantee of future results. • Options may expire worthless or not perform as expected, resulting in losses. • Options involve risk and are not suitable for all investors. Refer to Characteristics & Risks of Standardized Options: http://www.optionsclearing.com/about/publications/character-risks.jsp