Concentrated Stock Risk
Clients amass these concentrated positions in many different manners such as inheritance, employer stock grants, or business buyout to list a few. These positions can have sentimental value, low cost basis or restrictions which can make them reluctant or unable to reduce their concentrated equity holdings.
Concentrated positions pose an additional risk to client portfolios as downward movement in one position can have significant impact on net worth.
Our Optimized Listed Option (OLO™) strategy is customized to each client to deal with their specific needs and risk. With the client and Advisor’s input, Gyroscope Capital creates an account-specific Investment Policy Statement (IPS) outlining the client’s objectives. Our process “optimizes” by pairing these objectives to customized FLEX options with specific maturity dates, strike prices and net credits if applicable. We analyze the client’s Investment Objectives vs. the OLO™ regularly in a continuous effort to maximize the client’s benefit.
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.