Strategies
PHILOSOPHY
The goal of the Carapace Strategies is to outperform traditional equity investments in a declining market while preserving potential upside appreciation in a moderately rising market. The Strategies may also be used to generate above-average income and supplement traditional fixed income portfolios. As a hedge for an existing concentrated single stock position or a new equity investment, we believe the Carapace Strategies are an integral part of every diversified investment portfolio…........Stocks, Bonds, Carapace.
STRATEGIES OVERVIEW
| Carapace Strategy | Hedging Objective | Description |
|---|---|---|
| Defensive | Event Risk Hedge | Seeks to protect clients from market losses in an equity security beyond a specified level (Target Floor) while preserving potential upside to a capped level. |
| Buffered | Market Risk Hedge | Seeks to provide protection against a specific amount of initial depreciation in an equity security while preserving potential upside to a capped level. |
| Reduced Downside | Event Risk Hedge | Seeks to provide clients with potential stock appreciation to capped level on their full equity investment amount while limiting downside market risk to a fraction of their investment. |
| Covered Call | Income Generation | Seeks to generate income from sale of call options linked to specific equity securities while preserving potential upside to a capped level. |
| Secured Put | Income Generation | Seeks to generate income from sale of put options referencing specific equity securities with the potential to purchase equities at below market price. |
PORTFOLIO HOLDINGS
EQUITY PORTFOLIO
+EXCHANGE-LISTED OPTIONS
=HEDGED EQUITY STRATEGY
STRATEGY Characteristics
Each Carapace solution is customized to address our client’s specific risk and return requirements.
However, each Carapace strategy shares the following common characteristics:
