Explore option overlay

Access option overlay SMAs through BlackRock

Most advisors aren't comfortable with options compared to traditional risk management methods, but those who are see options' potential to help address specific client needs.* Familiarity with option overlay strategies may help solve complex client issues related to concentrated stock, income generation, and managing portfolio risk.

Getting started begins with understanding the outcomes option strategies may help deliver to clients and overcoming their common misconceptions.

BlackRock offers access to option overlays SMAs aligned with client outcomes

number 1
Manage concentrated stock
Clients with concentrated stock may face additional risk in their portfolios. Option overlays seek to manage risk without necessarily selling the stock.
number 2
Generate more income with option overlays
Clients may want to diversify their sources of income. Option overlays seek to produce income by changing the client’s risk profile without changing their underlying holdings.
number 3
Manage portfolio risk with option overlays
Clients may want to reduce risk in their portfolios but are limited by tax concerns. Option overlays may provide downside protection for equity portfolios to limit losses.

Myth-busting options

Many advisors don’t engage clients on options because of common misconceptions associated with options.

Myth Reality
“All options are risky” While options can be used for speculating, their application in wealth management often centers on risk management or generating income in line with a client’s goals.
“Options are complex and time consuming” Access to professional managers, education, and resources can make it easier than ever to incorporate options into an advisory practice.
“Options are tax-inefficient” While options can have differing tax rates, professional managers can help optimize for taxes and assist in a portfolio transitioning strategy, often without needing any new funds to begin.