Turning ideas into action
At Harvested Financial we work with clients to design and execute every type of options strategy. Our spread strategies function as stand-alone portfolio sleeves, or we can help you manage overlay, wheel, and income trades on custom baskets of names.
OWL puts interest rate income towards defensive or offensive positioning. COND identifies market neutral opportunities. GULL and HRON let you participate in market movement with dampened volatility. FALC tracks skew as a signal for synthetic stock strategies.
OWL
Capital Protection
Low
Treasury bills, long call spreads
Annually
Low Risk
100 Shares
Objective
Defensive positioning with defined risk overlay to hedge or participate. High levels of capital protection with potential for additional income. A clearly defined way to participate in the market while preserving capital.
Use Cases
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Down payments
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Home improvements
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College tuition
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Funding a sabbatical
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Career transitions
Further Reading
Owl
Advanced Guide to Structured Products
by Structured Retail Products
Understanding Structured Products
by Nathalie Osphare-Druilhe, BNP
COND
Yield Enhancement
Moderate
Short Call/Put Spreads; Long Treasuries
Monthly
Moderate Risk
$25,000
Objective
Premium collection from defined risk credit options positions. Complement equity holdings with negatively correlated strategies that perform in sideways markets.
Use Cases
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Yield generation
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Portfolio diversification
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Volatility capture in relatively high volatility targets
Further Reading
Owl
GULL
Market Participation
Moderate
Long Put Spreads, Short Calls, Long Equity
Quarterly
Moderate Risk
100 Shares
Objective
Participate in equity market growth, with a downside buffer that is paid for by limiting upside. Gain market exposure while reducing volatility and preserving portfolio value.
Use Cases
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Equity portfolio allocation
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Overlay on company stock or RSUs
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Long term investments with moderated risk profile
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Replacement for low volatiltiy strategies like dividend or min vol trackers.
Further Reading
Owl
FALC
Leverage
High
Long Calls, Short Puts, Long Equity
Weekly
High Risk
100 Shares
Objective
Equity replication strategy to capture skew premium and enhance market returns. This enhanced market exposure mimics long equity but captures additional volatility premium with options leverage.
Use Cases
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Aggressive positioning with capital leverage
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Long term allocations to indices
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Combination short volatility, long equity
Further Reading
Owl
by Euan Sinclair and Blair Hull
Downside Variance Risk Premium
by Bruno Feunou, Mohammad R. Jahan-Parval, Cédric Okou
The Skew Risk Premium in the Equity Index Market
by Roman Kozhan, Anthony Neuberger, and Paul Schneider
HRON
Market Participation
High
Long Puts, Short Calls, Long Equity
Weekly
Moderate to High
100 Shares
Objective
Downside buffer with dynamic interim caps to reduce cost and increase participation. Protection is paid for with installments of call sales. Dynamic rebalancing to optimize costs and option decay.
Use Cases
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Protected equity exposure in indices or individual stocks
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Overlay to concentrated positions
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Capture volatility in growth stocks with minimized downside