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Covered Call Transition

Concentrated Stock Solution

Clients with concentrated stock positions or legacy portfolios are often exposed to an inappropriate level of risk but may be reluctant to sell their positions. The Covered Call Transition Strategy offers a disciplined approach by gradually reducing concentrated stock positions at a price higher than the current market value and terms approved by the client.  

Provide Current Income

The sale of covered calls provides immediate income which can be used as the client wishes.

Allow for Participation in Stock Price Increases

The client can determine at which prices they feel comfortable liquidating their positions. The client will be able to participate in the gain up to the point at which the call is sold.

Provide Limited Downside Price Protection

The sale of the call option can be seen as downside protection as the proceeds from the sale offset a loss in the stock price. Also, subsequent call options will be sold in order to generate additional income.


The portfolios’ principal may diminish due to adverse market conditions. The results reflect the reinvestment of all dividends. Returns are net of all mutual fund and Gyroscope Capital Management Group, LLC, fees and expenses.

Past performance is not indicative of future returns.

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