Option Overlay Strategies

Tailored Solutions for Enhancing Portfolios

Option overlay strategies can be constructed to mitigate systematic risk, enhance portfolio income, or improve risk/return, enabling investors to efficiently achieve long-term portfolio objectives.

 

Overlays can be employed on a concentrated stock position or a multi-asset portfolio.

Define Risk, Improve Outcomes – that’s Investing Redefined®.

Why Swan Portfolio Overlay Strategies

The risks to capital are always present.

 

Options provide investors with strategies designed to solve for targeted income, risk mitigation, and improved risk-adjusted returns.

As a leader in overlay and hedged equity strategies, we offer comprehensive derivatives expertise and scalable implementation.

 

Overlay Managers – Since 1997.

Utilizing Portfolio Overlay Strategies

Swan Overlay Strategies can be used to:

  • Mitigate volatility in underlying holdings
  • Customize hedge to desired risk/return targets
  • Seek additional portfolio income
  • Manage concentrated positions
  • Tax-Managed Transitions

Portfolio Overlays – Targeted Solutions

Options enable advisors to structure a path to desired objectives.

 

Options-based portfolio overlays offer investors targeted solutions for multi-asset or concentrated positions. The most popular objectives are:

Hedge Downside Risk

Structured or Defined Outcome Strategies

Collar

    • Set a max loss
    • Upside capped significantly

 

Put Spread Collar

    • Buffered zone of protection
    • Zero, or low-cost hedging
    • Upside capped

Active Hedging Strategies

    • Combination of strategies available

Generate Income

Passive Income Strategies

Covered Collar

    • Premium collected serves as additional portfolio income
    • Defined exit points
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Swan’s custom overlay strategies have a few differences from our traditional Defined Risk Investing process, including:

  • Investors may use their own underlying equity portfolios or concentrated positions
  • Customized hedging and income strategies, both active and passive, are available

With the risks in marketplace mounting, there is increased interest in risk-managed strategies among the professional advisor and institutional money manager communities.