Equity Protection Strategies

Protect yourself from adverse market and single security moves.

A diversified portfolio can eliminate unsystematic risk – the risk of holding individual securities.  But systematic risk, or the risk of being invested in equity markets, can never be fully eliminated. Even the most properly constructed portfolio of stocks can get caught in the downdraft of a falling overall market.

In order to protect you against falling markets, the Burak Hannon Brojde group can devise conservative option strategies to help you offset the potential losses from holding a portfolio of stocks during a market correction.

A similar strategy applies to individual stocks. If you have been holding a security for a considerable time and have significant unrealized gains, but are concerned about the near-term prospects for the security, we can help you devise a strategy using options to lock in a minimum sale price for your security.  Doing so will protect some if not all of your profits while still allowing for full upside appreciation. If, conversely, you are short a stock, but have near-term concerns about a possible rise in the stock price, we can help you devise a strategy to lock in a maximum (re)purchase price, thereby solidifying your gains to date.

Sounds risky? Quite on the contrary. In the case of both strategies, your risk is limited to the premium you pay for the option.