Separately Managed Accounts
Delivering Income Solutions in a Low-yield Environment
Shelton Capital Management’s Optima Program is designed especially for the use of Financial Advisors seeking to improve their client’s risk-adjusted total return while providing cash flow in the form of option premium income.
The Optima program offers three distinct equity option overlay strategies. Each strategy can be an effective tool for advisors looking to deliver income in a low yield environment. The Optima program is a quantitative driven strategy reflecting in changes in equity prices, time, and volatility. All strategies generate additional cash returns by monetizing the volatility of the underlying asset.
Optima Equity Income Strategy
The Optima Equity Income Strategy serves as a “core equity” strategy within an overall asset allocation program. Shelton Capital selects a diversified portfolio of large cap blue-chip equities and sells covered call options on each of the equity positions to deliver an income stream with lower interest rate risk verses a typical fixed income portfolio.
Optima Diversified ETF Strategy
The Optima Diversified ETF Strategy is a total portfolio solution with full asset class representation using a comprehensive mix of ETFs. The mix of asset classes in the underlying portfolio – including U.S. stocks, international stocks, bonds, commodities and real estate – varies with the risk tolerance and model chosen for each investor. The portfolio manager will write, or sell, call options on most or all positions with an objective of generating portfolio income.
Optima Single Stock Strategy
The Optima Single Stock Strategy is designed to implement a covered call writing strategy on a concentrated stock position that a client already owns and may or may not wish to sell. With a customizable risk/return tradeoff, the client can enhance cash flow and make existing assets more productive.
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Each strategy is available as a customized solution. We could also use other equity option strategies that would provide downside protection and reduce risk.