Concentrated Position / Single Stock Management
Goals (different strategies to be selected by the client on a case-by-case basis):
1. Timely Sales & Optimized Exits - Diversify the portfolio, decrease security-specific risk, and manage taxable gains if requested by the client. When diversifying away from a highly concentrated position, always consider the tax implications and your comfort level if the shares were to ultimately move higher after you have sold.
2. Volatility Income Strategies - Selling calls and/or other option strategies to create an additional potential income stream for clients willing to sell some or all of their position. When using covered call strategies, it is important to remember that the underlying security is at risk of being called away (i.e. sold), potentially creating a capital gains liability.
3. Risk Management & Hedging - Hedge risk in a position around earnings dates and other events if requested by the client.