Make the Conversation about Risk

Systemic risk is defined as risk that affects the performance of the whole stock market simultaneously and cannot be eliminated or controlled by diversification. Unsystematic risk, on the other hand, is the risk associated with a particular stock and it can be mitigated somewhat by diversification. However, as investors we notice that diversification does little to protect a portfolio in down markets. 

But what about taking the whole risk conversation deeper by looking at a strategy or technique that goes beyond diversification to actually "control" your portfolio during high volatility markets. This technique is known as "covered call writing" or a covered call strategy. Simply put it allows the portfolio manager to use institutional techniques to preserve capital by creating a securities structure around the portfolio's stocks.

Call me and let's talk about preservation of capital ... risk will only increase as our markets continue to be disrupted by new technology and unpredictable global events. 

Success in all your efforts,

John