A majority of investors lack a disciplined approach to buying and selling equities, with most stock purchases and sales driven by emotion. Despite all of the analytical tools Wall Street has at their disposal, over time their predictions might not be any better than the toss of a coin. With the exception of a dividend-paying stock, the only way an investor makes money on a traditional equity purchase is if the price increases. The success of a purchase and sale often depends on predictions of the future share price and on the condition of the market in general. Our risk-adjusted portfolio strategies use options to broaden the range of profit potential. Our calculated entry and exit points based on supply-and-demand dynamics help take emotion out of the equation.

By incorporating derivatives (covered calls and puts) into the mix, the Equity Risk Management Group offers investors:

	A reduced reliance on specific equity and market movements
	Increased likelihood of generating a greater rate of return than traditional equity purchase only when the share price does not exceed the cap price plus premiums collected
	Potential of positive returns even if the stock remains flat
	Opportunity to generate positive returns if the stock moves down within a certain price range
	Defined parameters of downside risk and upside potential that can generally be projected from defined entry and exit points

» DISCLOSURE


By utilizing covered calls, investment returns are capped at the strike price of the contract plus the premium. While this may increase the total return, it may also reduce potential profits of the equity purchased as opposed to not having sold a covered call. The sale of puts, while generating additional premiums and partially reducing the cost basis of the equity, will, at times, increase your exposure to the underlying equity. You should also be aware that there are additional fees and commissions associated with our program when spread transactions that require two legs are utilized. Be aware that there are inherently greater risks associated when margin and/or other leverage is utilized that will substantially increase the potential of both gains and losses. *Please see Glossary for an explanation of certain terms contained herein.