Strategies
PHILOSOPHY
The Carapace Strategies seek 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, the Carapace Strategies should be an integral part of every diversified investment portfolio……Stocks, Bonds, Carapace.
STRATEGIES OVERVIEW
| Objective | Strategy | Description |
|---|---|---|
| Protected Growth | Buffered | Seeks to provide protection against a specific amount of initial market depreciation (Buffer) in an equity security while preserving potential upside to a capped level. |
| Defensive | Seeks to protect clients from market losses in an equity security beyond a specified level (Floor) while preserving potential upside to a capped level. | |
| Dual Directional Buffered | Seeks to provide protection against a specific amount of initial market depreciation (Buffer) on an underlying stock while also offering upside appreciation potential to an Upside Cap. The Strategy also provides a potential positive return equivalent to the absolute return of the depreciation in the stock to a Downside Cap. | |
| Modified Defensive | Seeks to protect clients from market losses in a specific underlying equity beyond a Floor and appreciation potential on a portion of the position to a capped level while leaving the remainder of the position uncapped. | |
| Reduced Downside | Seeks to provide clients with potential stock appreciation to a capped level on their full equity investment amount while limiting downside market risk to a fraction of their investment. | |
| Principal Protected | Seeks to provide 100% principal protection on an underlying equity position while maintaining the potential for appreciation to a capped level. | |
| Income | Covered Call | Seeks to generate income from the sale of call options linked to specific equity securities while preserving potential upside to a capped level. |
| Secured Put | Seeks to generate income from the sale of put options referencing specific equity securities with the potential to purchase equities at below market prices. | |
| Enhanced Upside | Accelerated Growth | Seeks to provide enhanced upside appreciation potential on an equity investment to a capped level without adding to downside market risk exposure. |
| Financing | Box Spread | Seeks to provide financing through the purchase and sale of put and call options with a fixed payoff structure. |
PORTFOLIO HOLDINGS
EQUITY PORTFOLIO
+EXCHANGE-LISTED OPTIONS
=CARAPACE STRATEGY
STRATEGY Characteristics
Each Carapace solution is customized to address our client’s specific risk and return requirements and shares the following common characteristics:
