Concentrated Stock Transition Strategy - Capital Wealth Planning

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Concentrated Stock Transition Strategy

Enhanced Dividend Income Portfolio

INVESTMENT OBJECTIVE - MODERATE GROWTH AND INCOME

Portfolio Highlights

The Concentrated Stock Transition Strategy is designed to gradually transition an investor out of their concentrated stock position(s) while generating a steady income stream.

CWP analyzes the client's portfolio equity holdings, identifying those with unrealized gains and losses.
CWP managers rebalance the portfolio by liquidating stock positions with embedded losses equal to the amount with embedded gains.
After determining the amount of realized gains the client is willing to recognize each fiscal year as well as the number of years the transition is to occur, CWP managers set targets.
As the position(s) get called away, proceeds can be transitioned into the Enhanced Dividend Income Portfolio (EDIP) or allocated elsewhere.

Disclaimer: CWP does not offer tax advice. Please consult with a tax professional to determine how transitioning out of a concentrated stock position may affect your unique tax situation.

Contact us for a detailed performance report.

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MONEY MANAGER & COVERED CALL ADVISOR NAPLES FLORIDA

At Capital Wealth Planning, LLC, we work as a money manager in Naples Florida, offering wire houses and regional broker-dealers throughout the country, covered call portfolios through managed account WRAP platforms. The services provided are that of a registered investment adviser and include: managed portfolios, dividend paying stocks, income portfolio, covered calls, cash secured puts and many others. CWP provides discretionary investment advisory portfolio management services to individuals and institutional investors. These advisory services are offered either directly or through wire houses via wrap platforms.

DISCLAIMER

IMPORTANT NOTE: Capital Wealth Planning, LLC, (CWP) is an SEC registered investment adviser. SEC Registration does not imply a certain level of skill or training. Capital Wealth Planning, LLC only transacts business in states where it is properly registered or in compliance with applicable state regulations. Individualized responses that involve actual or contemplated securities transactions or the rendering of personal investment advice for compensation will not be made absent compliance with all applicable investment adviser regulation requirements. Please contact CWP if there are any questions.

Capital Wealth Planning and its representatives are in compliance with the current registration requirements imposed upon registered investment advisors by those states in which it maintains clients. Capital Wealth Planning may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. The results achieved by individual clients will vary and will depend on a number of factors including the particular underlying investments and their dividend yield, option market liquidity, interest rate levels, implied volatility, client investment objectives, risk tolerance, goals and whether an investor imposes any reasonable CWP approved investment restrictions or limitations on their separately managed account, and the expressed return volatility, and the client’s expressed return and risk parameters at the time the service is initiated and during the term. Past performance is not a guarantee of future returns. Investing in options involves risk that must be considered and reviewed with a professional prior to investing. This website is not intended for the giving of investment advice to any single investor or group of investors.

Covered call option cash flow for any portfolio will vary depending on actual portfolio positions, option premiums received, individual security price volatility, and general stock market volatility. Positions covered by call options may be called away, creating realized capital gains or losses. Cash flow is not guaranteed over any period. More information may be found in CWP’s Form ADV.

RISKS TO CONSIDER:

While CWP takes considerable care in reducing the possibility of having shares called away, there can be no guarantee that the owner of the call option will not exercise the option prior to CWP’s repurchase of the sold option.

The actual income from the strategy will depend, to a large extent, on the target price of the underlying security. Therefore, the amount of incremental cash yield is predominantly determined by investors’ individual risk tolerances and willingness to sell the underlying position.

Covered call writing can provide limited downside protection. It does not, however, eliminate downside risks. Options involve risk and are not suitable for all investors. Prior to opening an account with Capital Wealth Planning, clients are required to understand the risks associated with the purchase or sale of options by receiving the Options Clearing Corporation Publication, “Characteristics and Risks of Standardized Option Trading”. Copies of this document may be obtained by your Financial Advisor or the Option Clearing Corporation. Risks of options are available in the “Characteristics and Risks of Standardized Options,” which is available at https://www.occ.com/about/publications/character-risks.jsp, calling (888) 678-4667 or by calling CWP at (239) 593-2100. Investments or strategies discussed may fluctuate in price or value.

ADDITIONAL DISCLAIMER:

CWP’s services should be considered in connection with its written disclosure brochure (i.e., Form ADV Part 2A), a copy of which is available for free by calling (239)593-2100, emailing [email protected] or clicking the “ADV FORM” button located at the bottom right of this page.

The views expressed herein are those of Capital Wealth Planning, LLC and may change at any time without prior notification. Past performance is not indicative of future results. CWP does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investments. Investors may get back less than invested, as the strategies portrayed may not achieve their investment objective. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies. Before acting on any investment, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

© 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. This rating is as 6/30/2024. There was no direct compensation provided in connection to receiving this rating. However, a fee was paid in order to advertise it on this site and other documents. Past performance is no guarantee of future results. The Morningstar Rating™ for separate accounts, commonly called the star rating, is a measure of a separate account’s risk-adjusted return, relative to other separate accounts in the same Morningstar Category. Separate accounts are rated from 1 to 5 stars, with the best performers receiving 5 stars and the worst performers receiving 1 star. Separate accounts are rated for up to three periods (three, five, and 10 years), and ratings are recalculated each quarter.

Capital Wealth Planning, LLC (CWP) uses unaffiliated vendors or entities for sources of information that may be contained in this website and CWP believes to be accurate, but CWP is not responsible for its accuracy.

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