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.

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