Customized Strategies
Rampart has developed the Rampart Collar Strategies, a suite of option strategies that employ both calls and puts to provide downside protection, in order to help investors manage the market risk of their equity portfolios. In the ever changing stock market landscape, Rampart Collar Strategies provide predetermined levels of downside protection and commensurate upside potential.
If an investor is more concerned about asset protection rather than risk mitigation or income enhancement, the Rampart Collar Strategies may provide the solution. The Rampart Collar Strategies can be divided into three implementations:
- Static/Costless Collar
- Static/Costless Put Spread Collar
- Hybrid Collar
A collar strategy uses benchmark index (or discrete equity) put options to provide for portfolio (or specific stock) protection in the event of significant erosion in the market (or stock) price level. The purchase of these puts is similar to a form of limited term insurance. The difference between the put strike price and the current index (or stock) price is similar to an insurance policy’s “deductible.”
The Rampart Collar Strategies seek to provide investors with disciplined approaches that create a defensive posture to the equity market. They are mathematically-driven portfolio risk control and rebalancing tools.
Collar Strategies Factsheet