A lot of wealth has been created for Wall Street selling complex and expensive solutions to retail customers. While complex doesn’t always mean better, we argue there are timely and valuable solutions among the universe of complex strategies. Not all strategies are suitable for all clients, but many have a place in our clients’ portfolios.
We seek to provide the greatest probability for success in meeting your goal. Many of the strategies we employ are executed at lower costs to clients than a typical equity mutual fund.
Not knowing how tomorrow or the next decade will play out, these strategies allow us to potentially benefit from the market’s uncertainty and volatility. Rather than own a single strategy from among the ones listed below, we most often will look to employ multiple strategies in concert with one another.
Non-traditional ETF and Mutual Fund Strategies
- Scalable and diversified
- Allows one to easily own multiple underlying securities and strategies in a single account
- Access to top industry talent at low minimums
- Allocated strategies currently include buffered ETFs, Covered Call ETFs, Long/Short mutual funds, and Trend Following and Arbitrage strategies
PUTW – PUT Writing Strategy
- Designed to be additive to one’s underlying “long” portfolio
- Our team most often targets portflio income enhancements ranging from 1-3%
- Underlying assets and portfolio objectives and risk tolerance will drive this conversation
- This solution IS NOT suitable for all investors and cannot be executed effectively in retirement accounts
- Disciplined and driven by a blend of experience and concrete rules
Covered Call Writing
- Risk-managed exposure to high quality equities and equity indices
- Strategy stands to benefit from and capitalize upon market volatility
- Has the potential to create income streams greater than that of a typical bond portfolio
- ABC trades at $198/share
- Buyer of shares receives a modest quarterly dividend
- Otherwise only makes money when ABC goes up in price from one’s purchase price
- We might buy ABC at $198 and agree to the contractual sale of those shares in 2 months at $200
- In exchange for that agreement, we receive compensation of $8/share
- Our break-even is $190 and we are profitable 2 months later if ABC closes above $190 at expiry
- If ABC trades at $200, we are +$10, whereas the owner of the shares alone is +$2
- ABC trades at $198/share
Opportunistic and Advanced Options Strategies
- Straddles, strangles, synthetics, and more
- Can offer the more sophisticated, qualifying client possible higher-leverage solutions for high-conviction ideas
- Can use advanced techniques to hedge portfolio-specific risks (i.e. concentrated stock)
This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Neither Triad Advisors nor its representatives or employees provide legal or tax advice. If legal or tax advice or other expert assistance is required, the service of a currently practicing professional should be sought.