Carapace Financial Advisors

If you’re surprised that the stock market is currently at all-time highs and you’re wondering what to do next, you might consider selling call options referencing select stocks in your investment portfolio. 3 reasons to sell call options today are as follows: 1) Increase equity return potential.?With the S&P 500 up more than 155% from its Covid low, most equity analysts are predicting single-digit gains through year-end 2025.?Selling call options referencing “buy and hold” stocks allow for continued appreciation potential to an above-market price and outperformance equivalent to the call premiums received. 2) Supplement income.?The Federal Reserve is forecasting that the Fed Funds Rate will decline by 1.42% to 3.41% by the end of 2025.?Investors can enhance portfolio income by selling calls on existing equities in their portfolio and generate yields in excess of 3%. 3) Capitalize on elevated market volatility.?In advance of the upcoming November election, the S&P 500 volatility index is currently 19.0 compared to its 2024 average of 15.2.?Selling call options today allows investors to benefit from higher market volatility and generate higher options premiums.????

It was a fantastic first day at BNY Mellon | Pershing #realinsite engaging with advisors from around the country. If you're in Nashville, please stop by Booth #602 tomorrow to learn how Carapace Financial Advisors strategies can help your clients hedge existing concentrated stock positions or customize new equity investments with market risk protection.

Congratulations to Hope through Education on hosting a successful Spring Luncheon fundraiser last week. Carapace is extremely proud to be partnered with such an incredible organization promoting academically excellent, values-based education for disadvantaged youth. https://lnkd.in/eThb9q_b

In a recent article, the Financial Times notes that there have been $20 billion of net inflows into buffered ETFs since 2022. Carapace Financial cautions that some buffers are better than others. Buffered investments are particularly attractive for retirement-focused investors who want to stay invested in equities but limit losses in a downturn. While buffered ETFs, notes and annuities are becoming a staple in retirement portfolios, there are significant drawbacks to these forms of investment. Each is “one size fits all,” unmanaged (“set it and forget it”) and fees can be pricey. As an alternative, Carapace Financial offers its clients buffered strategies in separately managed accounts that are: 1) Customized to meet specific risk / return objectives 2) Managed 3) Cost-effective So, while buffered investments are a great tool to navigate uncertain equity markets, we advise clients to consider the best form of investment before implementing a strategy. https://lnkd.in/eF2RhQns