We purchase a put option (approximately 5% BELOW the current stock price) every month against the stocks you own in your portfolio.
This will limit your portfolio loss to 5% of its value.
This strategy allows you to protect your downside losses by putting a cap on your upside potential profit.
The put and call options offset one another which can provide you loss protection without any out of pocket cost.
The strategy caps your potential upside gains, but reduces your downside losses and reduces the volatility of your return.
▲ 5% upside profit cap ▼ 5% max downside loss
See how this strategy works with a stock you own:
VestFront can also use this strategy to protect your entire portfolio every month, with little or no out of pocket cost.