DISCOVER THE POWER OF EQUITIES+

Ask any wealth manager, and they will likely tell you that the key to building wealth is to stay invested throughout each market cycle and ignore short-term volatility. Yes, markets wax and wane, but the way to cope with this is to diversify your assets and occasionally rotate by sector, geography or asset class.

Equities+ allows you to combine your existing equity portfolio with an options overlay to protect your existing store of wealth, facilitate position management, generate additional income and trade tactically around macroeconomic and company-specific events that affect your portfolio’s performance.

ADVANTAGES OF EQUITIES+

Equities+ is a service we offer to clients who wish to stay fully invested throughout the economic cycle and who wish to use options as an overlay to their core portfolio.

You can easily hedge all or part of your portfolio against downside risk by buying put options or put spreads
You can generate income whilst seeking to build or reduce your core holdings by granting covered calls and puts
You can trade tactically around your core positions around time-specific macroeconomic or company events such as central bank interest rate decisions or company earnings announcements, for example, by trading straddles and strangles
You can benefit from margin efficiencies
You can seamlessly make and take delivery of the underlying shares against your option expiries

DISCOVER HOW EQUITIES+ CAN HELP PROTECT YOUR WEALTH

You most likely insure your most valued possessions – your house, your car, your health, but what about your portfolio?

When markets become volatile many investors panic and sell some or all of their investments, usually at or near the bottom. This can be a terrible mistake because you will crystallise any capital gains, forego any dividend income, risk seeing the value of your cash being eroded by inflation and, most damagingly of all, you will almost certainly miss the bounce.

An alternative is to buy portfolio insurance in the form of a put option or a put spread. As with your car insurance, you pay a premium for this protection for a specific period of time and drive safe in the knowledge that if you hit a bump in the road, the size of your pay-out could be many times the premium you paid.

Contact our Desk to find out more about Equities+.

OTHER ADVANTAGES OF EQUITIES+

INCOME GENERATION

Granting puts and calls are a good way to build or reduce your core equity holdings. In effect, you are being paid to wait for the share to trade at your chosen entry or exit price.

TACTICAL TRADING

Shares often move the most around core macroeconomic or company-specific announcements. Our team can work with you to take advantage of any anticipated short term price movements through various option strategies that fit your outlook.

MARGIN EFFICIENCY

Granting options requires your positions to be marked to market daily, and for initial and variation margin to be posted whenever there is a shortfall. By holding your equities with us too, these can be used to offset some or all of the margin you are required to post.

DIRECT COMMUNICATION

Most importantly, both our brokerage services are managed over the phone by our team of accessible experts. By knowing your core holdings we can proactively help you to identify areas of opportunity where options can help achieve any combination of the above stated objectives.

EQUITIES+ PRICING

Product	Cost in GBP	Cost in USD
Options	£6.00 per lot per side	$10 per lot per side
Futures	£6.00 per lot per side	$10 per lot per side
Equities	All Sterling denominated Stock contracts: 0.3%	All US denominated Stock contracts: 0.3%