Investment Solutions with Managed Wealth Advisors

The Firm employs a strategy that builds a portfolio using cash secured puts and initial purchases not assigned through an option. Individual securities are selected that will present a favorable rate of return relative to the cash secured put option that will expire in short period of time. The selection of the underlying security of the cash secured put option for a clients account is based on the suitability of that particular client. The underlying security ranges from securities with a long dividend history for the more conservative to a high growth without regard to dividends for the moderate to aggressive client. While collecting the premium for selling the option we build in downside protection as the strike price sold for the option is lower than if an outright purchase were made on the security at the time of the transaction. If the security is assigned to the client’s portfolio, a covered call will be written on the security to enhance the return on the investment. Covered calls will vary in duration and strike price for which the security would be sold, if assigned. If the security is far below the current purchase price we will wait for a more favorable time to write the call option on that particular security. If a security is unlikely to appreciate above the current purchase price a covered call will be written, if assigned, would produce a loss. The general philosophy is the majority of cash secured puts and covered calls will expire worthless which will enhance the return for the client. We may add an ETF to add stability and income on more conservative clients.