Concentrated Stock Services
Custom Overlays for Legacy Equity Positions
At Liquid Strategies, we seek to help advisors and their clients manage concentrated stock positions through options-based overlay strategies designed to address income, risk management, and diversification objectives. Whether you’re seeking supplemental income, risk mitigation, or a structured path toward diversification, our custom options-based overlays are designed with your goals and constraints in mind.
Tailored for High Net Worth Portfolios
Our Concentrated Stock Services are crafted for advisor clients with $5M+ in individual stock or ETF positions who:
Rely on core equity holdings for income
Prefer to defer capital gains taxes
Seek downside protection while maintaining participation in future market appreciation subject to strategy parameters.
Need a flexible yet disciplined framework for gradual diversification
Why Choose Liquid Strategies?
Rules-Based, Real-Time Management
Since 2013, we have actively managed option overlays using transparent, rules-based protocols designed to capture premium income and manage directional risk. Strategies are monitored daily with the ability to adjust exposure dynamically based on changing market conditions.
Tax-Aware Structuring
We understand the implications of low-basis positions. Our overlays are built to respect tax sensitivities while pursuing risk-adjusted outcomes.
Liquidity & Control
You retain full ownership of the underlying security. Portfolios remain fully liquid with no lockups or pooled structures—everything is implemented in separately managed accounts (SMAs) at your existing custodian.
Customization at Scale
Each overlay is structured with you in mind—no templates. Whether you need downside protection, income, or a combination, we shape each program to meet your objectives.
Sample Strategy: Costless Collar Overlay
Objective
Provide downside protection while capping a portion of upside to generate sufficient premium income to fund the hedge.
Structure
- Purchase protective puts ~10% below current market value to establish a downside floor
- Sell covered calls ~10% above market value to generate income to fund protective puts
- Strike levels and expirations are customized based on volatility, tax sensitivity, and investment horizon
- Strategy is reviewed and adjusted regularly to reflect changing market dynamics
Illustrative options payoff diagram for educational purposes only. Stock ABC is not a real security, and the strikes shown are examples, not a recommendation. Actual strike levels and expirations are customized for each client.
Your Equity. Our Management.
Work with a team that has over 30 years of options experience and a proven track record of innovation in overlay management. From complex scenarios to legacy position planning, Liquid Strategies provides a disciplined framework that brings clarity and control to concentrated holdings.
Liquid Strategies, LLC. is a Registered Investment Adviser. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the advisor has attained a particular level of skill or ability. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice.
This website is solely for informational purposes and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.
Options are not suitable for all investors. There are risks involved in any option transaction or strategy. A decision as to whether, when and how to use options involves the exercise of skill and judgement and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile, and the use of options can lower total returns. Individuals should not enter options transaction until they have read and understand the options disclosure document, “Characteristics and Risks of Standardized Options”, which outlines the purposes and risks of options transactions. You can download this document at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.