Ranked Number One in Option Writing by Morningstar™

For Immediate Release:

November 20, 2019

NAPLES, FL –Capital Wealth Planning, LLC (CWP) founder and chief investment officer Kevin Simpson, is proud to announce the firm’s Enhanced Dividend Income Portfolio (EDIP) SMA (separately managed account) strategy maintained its number one ranking in the Morningstar™ option writing category out of 32 Option Writing SMA Managers. This ranking is based on a five-year time period as of September 30, 2019. 

CWP’s managed account strategies continue to be recognized and highly ranked by Morningstar in the option writing category. The Enhanced Dividend Income Portfolio has also garnered the number one rank as of June 30, 2019 for the one-year timeframe. EDIP has an ESG version of the strategy that as well that has a five-star rating as of June 30, 2019 and overall for the five-year time period.

EDIP’s lead portfolio manager Josh Smith emphasized, “Our rules-based approach allows us to focus on total return while being tactically driven with our option writing.  We feel this approach differentiates us from our peers and contributes to our ability to regularly maintain our number one ranking”.  He further adds, “At CWP, we always want to do our best to buffer the downside for our clients but recognize that being tactical with our option writing gives us an opportunity to capture some larger gains that strong long-term market cycles can provide”.

Simpson concluded, “We manage the strategy on a total return basis and pride ourselves on exercising patience and discipline when making decisions. Our CWP portfolio managers target the strategy to earn 2% to 4% of annual portfolio income from option premiums through tactical covered call writing on 30% to 60% of the portfolio over the course of the year, while also capturing an additional 2% to 3% in dividends from equity holdings within the portfolio for total targeted income component of 4% to7%”.

CWP’s EDIP Strategy features a concentrated domestic equity portfolio of 24 to 27 mega-cap blue chips from the S&P 100. The Enhanced Dividend Income SMA Strategy is a 5-Star Morningstar™ rating among 32 peer, option-writing SMAs in the category. Learn more about Morningstar rating methodologies.

About Capital Wealth Planning

Capital Wealth Planning, LLC (CWP) is an SEC registered fee-only investment advisory firm based in Naples, Florida. Building and managing proprietary income-oriented portfolios since 2005, the company has approximately $1.5 billion of assets under management. The firm’s methodologies are designed to enhance risk-adjusted returns and offer portfolio protection while delivering monthly cash flow. Ranked by Financial Advisor Magazine in 2018 as one of the top 50 fastest growing SEC registered investment advisors in the country, CWP leads the implementation of covered call strategies with their Enhanced Dividend Income Portfolio, ESG Enhanced Dividend Income Portfolio, ETF Covered Call Portfolio and Covered Call Overlay Service. Additional information is available at www.capitalwealthplanning.com.

You should not assume that any discussion or information contained herein serves as the receipt of, or as a substitute for, personalized investment advice from CWP. It is published solely for informational purposes and is not to be construed as a solicitation nor does it constitute advice, investment or otherwise. To the extent that a reader has questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of the CWP written disclosure statement regarding CWP’s advisory services and fees is available upon request. CWP’s comments are an expression of opinion. While CWP believes these statements to be true, they always depend on the reliability of CWP s credible sources. Past performance is no guarantee of future returns. 

Investing in options involves risk that must be considered and reviewed with a professional prior to investing. Before engaging in the purchase or sale of exchange-traded options, investors should understand the nature and extent of their rights and obligations and be aware of the risks involved, including the risks pertaining to the business and financial condition of the issuer of the underlying stock. Listed options are not suitable for all investors.  Prior to buying or selling options, a person must be provided with and review a copy of CHARACTERISTICS AND RISKS OF STANDARDIZED OPTIONS. A copy of this document may be obtained from Capital Wealth Planning, LLC, 1016 Collier Center Way, Suite 200, Naples, FL 34110.

Illustrations used herein are hypothetical (including any illustration of potential portfolio cash flow from a covered call option writing program). Covered call option cash flow for any portfolio will vary depending on actual portfolio positions, option premiums received, individual stock 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. 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 volatilities, and the client’s expressed return and risk parameters at the time the service is initiated and during the term.

Disclosure: 5-year rating out of 32 option writing SMAs as of September 30, 2019. © 2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (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. Past performance is no guarantee of future results.