Options Overlay

For those clients who wish to utilize this service, each stock purchased is then individually reviewed.

Based upon this review, individual 'call' options are written at levels reflecting the perceived potential for that stock.

Each individual transaction is shown in the portfolio statement.

Where no current value is available in the market, put options may be written below the current market price in an attempt to enter that stock at lower levels. In both the above situations, the premium received enhances the yield of the portfolio and supplements dividend yield.

It should be noted that the non-geared use of options will always reduce the risk of a portfolio, and that at no time will uncovered options be written.