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Over Concentrated Stock Position

Have you found yourself with a large stock position? Feel as if you have too many eggs in one basket?

Living in Northwest Arkansas provides employment access to some of the largest retailers, and consumer products companies in the US. Often employees of these firms accumulate large holdings of equity throughout their careers.  While this can be a great way to accumulate wealth: it can create over concentrated positions that fluctuate more drastically than a balanced portfolio, tax burdens, and or liquidity issues.

At Harvest Investment Strategies, we specialize in tactical strategies that slowly diversify away from over concentrated equity position using techniques that are catered to your financial needs or goals.

Reasons for an over concentrated position

  • 401k
  • Employee Stock Option Puchase/Profit Sharing
  • Inheritance/Gift
  • Board of Directors Compensation
  • Stock Splits

If you have an equity holding in excess of $100,000, we would love to talk with you.

How we divest over concentrated positions

We utilize call options to lower risk and improve investment returns.

Anyone could reduce exposure to an over concentrated stock position by simply selling shares. However, what if you could tactically divest from such positions and potentially embellish your total return at the same time? This is where a tactically implemented covered call strategy could benefit. A common analogy that portrays the idea of covered call writing is rental income on a property.

These hypothetical examples are intended as an illustration only and do not reflect the performance of any specific investment..
Covered Call Writing involves Options, Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation.

Learn about covered calls