Our team has spent the past decade thinking through the best ways to help improve client outcomes, and a good bit of that has been using the options market to better capture the market ups and protect against the downs.
A growing portion of the experience utilized is going towards helping advisors tackle unique challenges for clients. The combination of a rising market and fewer public companies has led to more cases of highly concentrated positions… a good problem for a client and one that creates opportunities for diversification, income, and/or protection.
We’ve helped with cases of many types, working with advisors to understand client goals and developing a plan to actively manage the position in accordance with the client’s unique needs. The word active should be emphasized; without a constant eye on the structure, there are risks lurking around every corner. Unplanned capital gains taxes, capped upside, and ineffective protection are among the obvious risks, with those risks growing if the strategy defaults to set-and-forget.
For those of you with clients in need of help, here’s a great decision tree our overlay team uses to help nail down a plan:
We think this is really the starting point for your benefit in guiding these clients. If you’d like more detail on how we think about the opportunity from there, here’s a more complete primer about our thought process: Aptus Guide to Option Strategies.
We welcome any discussion you’d like to have; we know how important those clients can be and how much care needs to go into both the blueprint and the daily management of these positions. Please reach out at overlays@apt.us or call us at 251.517.7198 with questions.
As always, we thank you for your trust in letting us help you serve clients with this type of work.
Disclosures
Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The information contained herein should not be considered a recommendation to purchase or sell any particular security. Forward looking statements cannot be guaranteed. Hypothetical examples are for illustrative purposes only, do not reflect the deduction of fees or expenses, and are not indicative of any actual investment result.
This commentary offers generalized research, not personalized investment advice. It is for informational purposes only and does not constitute a complete description of our investment services or performance. Nothing in this commentary should be interpreted to state or imply that past results are an indication of future investment returns. All investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with an investment & tax professional before implementing any investment strategy. Investing involves risk. Principal loss is possible.
The content and/or when a page is marked “Advisor Use Only” or “For Institutional Use”, the content is only intended for financial advisors, consultants, or existing and prospective institutional investors of Aptus. These materials have not been written or approved for a retail audience or use in mind and should not be distributed to retail investors. Any distribution to retail investors by a registered investment adviser may violate the new Marketing Rule under the Investment Advisers Act. If you choose to utilize or cite material, we recommend the citation be presented in context, with similar footnotes in the material and appropriate sourcing to Aptus and/or any other author or source references. This is notwithstanding any considerations or customizations with regards to your operations, based on your own compliance process, and compliance review with the marketing rule effective November 4, 2022.
Advisory services are offered through Aptus Capital Advisors, LLC, a Registered Investment Adviser registered with the Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about the advisor, its investment strategies and objectives, is included in the firm’s Form ADV Part 2, which can be obtained, at no charge, by calling (251) 517-7198. Aptus Capital Advisors, LLC is headquartered in Fairhope, Alabama. ACA 2609-9.