An employee stock option program can be a great thing,

if your highly concentrated stock portfolio does well.

If not… You face the very real possibility of catastrophic losses.

The Solution:

Inspire Capital’s “Collar” strategy. We have designed a tax advantaged, investment strategy to greatly limit the risk inherent in a concentrated equity portfolio. We actively manage this strategy for select clients.

Who can benefit most:

Serious investors with concentrated equity portfolios who wish to minimize both risk and capital gains tax while earning some extra income.

How it works:

We sell “covered calls” on your concentrated equity position to generate income for your portfolio. We use this income to purchase “protective puts” to protect from significant downside risk. The use of covered calls and protective puts together in such a way is known as a “cashless collar”. It is considered “cashless” because it generates its own funding without the need for additional costs to you. This strategy greatly limits capital gains taxes because it limits risk without the need to sell your concentrated equity position.

Also, there is the potential for enhanced profitability. Our goal is to create enough income to cover the cost of the puts, our management fee, and have enough income left over to create additional profits for you.

How we’re paid for our services:

We charge a percentage of assets under management for our services. We do not sell commission based products. Inspire Capital is independent from any other financial service providers.

Inspire Capital manages many different account types such as:

    • Individual, Joint Tenant, Partnerships
    • Trusts
    • Corporate
    • Pensions
    • IRA’s (Traditional, IRA Rollovers, Inherited IRA’s, Roth IRA’s)

Clients maintain separate accounts at Scottrade, Inc.

Contact Info:

Michael McKee, CFP®
phone: 407-489-3155
fax: 407-331-0087
115 N. Maitland Ave.
Altamonte Springs, FL 32701

Past Performance is no Guarantee of Future Results.