What Is An Enhanced Return Portfolio

The Enhanced Return Portfolio is an income driven strategy that seeks to enhance the return on both cash and existing equity positions through the use of options. With historical sideways markets and increased volatility, this actively managed strategy is designed to take advantage of various market environments.

Cash – A universe of stocks are screened daily for opportunities that meet our rigorous fundamental and technical criteria. Once a stock is selected we enter the position by incorporating a short term buy-write (buy stock/sell covered call) or through cash secured put writing (sell a put).

Existing positions – Clients existing positions are screened daily for covered call writing opportunities. Through advanced technical analysis we seek to incorporate covered calls on stocks that are consolidating or retracing from pivot highs. With the added value of covered call income our goal is to enhance the clients portfolio returns above dividends and capital appreciation.

Total Return Portfolio

Total Return is for the client who wants to be nimble and capture the market in both directions. TRP utilizes cash secured put writing along with a buy-write strategy. With a buy-write we go and purchase a stock position while simultaneously writing a covered call. We gain income from the call premium and if the stock is called away we participate in the appreciation. On the cash secured put side; we only write puts on stocks that we don’t mind owning. If the option expires we realize the premium. If we are put the stock, that is not a troubling thing as the new position turns into a buy-write participant.

View Examples Here

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