Risk Management in Option Income Investing
Option income investing can help control investment risk for affluent investors and families. Investment risk describes the potential that your portfolio will decline in price or be more volatile than you expect or can withstand. As a high-net-worth investor, you may own option income funds through mutual funds, ETFs, separately managed accounts, and retirement accounts […]
How Hedge Fund Investors May Reduce Taxes
One of the most frequent questions we get from clients is, “How will I be taxed?” Hedge funds (and mutual funds) that invest in options may generate 90% or more of their income from selling options on equities held in their portfolio. Fund managers collect the option premium and pass it along to investors as […]
Option Basics for Investors Who Don’t Trade Options
As an affluent investor, your portfolio may include mutual funds, index funds, separately managed accounts, and retirement accounts, some of which may hold options in their allocations. In other words, you own options, too. Many high-net-worth individuals and families like you likely prefer your assets to be managed by professional advisors and within professional portfolios. […]