INDIANAPOLIS, June 12, 2019 /PRNewswire/ -- Director of Investments Jim Murphy, CFP,® CAIA, was the speaker for Innovative Portfolios at the Philadelphia Financial Planning Association® (FPA®) Annual Symposium in May, 2019. Murphy's topic, Using Options for Financial Planning Solutions, focused on common investment planning issues and the potential to address them through options income and protection strategies.
Benjamin Franklin said, "An investment in knowledge pays the best interest." By sponsoring FPA chapters, Innovative Portfolios helps educate and support financial planners and investment advisors in offering clients potential for alternate sources of income. This presentation gave financial planners CE credit regarding application of equity option strategies to help manage investment planning issues—"at-risk" portfolios needing rebalanced asset allocation, idle portfolios with low cost basis stocks, and portfolios with a concentrated position.
Emphasizing the difference between risk and volatility, and between historic and implied volatility, Murphy illustrated examples in which option overlays incorporated volatility as an asset allocation through:
- a covered call strategy to rebalance a portfolio and generate income from the option premium
- a vertical put spread strategy in an idle portfolio to receive option premium income
- a collar option as a protective strategy within a long stock position
Benefits and risks of the strategies were discussed to ensure understanding of the potential for each approach.
Jim Murphy, Director of Investments for Innovative Portfolios, is a 25-plus year veteran in the financial industry. At Innovative Portfolios, he assists with the integration of option-based strategies and oversees business development. Murphy is based in Scottsdale, Arizona. Innovative Portfolios is headquartered in Indianapolis, Indiana.
About Innovative Portfolios, LLC:
Innovative Portfolios is a professional money manager and investment advisor backed by the knowledge and resources of an experienced money management team. The firm seeks to educate and support financial planners and registered investment advisors seeking alternate sources of investment income for their clients. Innovative Portfolios sponsors more than 17 Financial Planning Association (FPA®) chapters across the United States. Visit innovativeportfolios.com for more information.
About The Financial Planning Association (FPA)
The Financial Planning Association is the principal professional organization for Certified Financial Planner™ (CFP®) professionals, educators, financial services providers and students who seek advancement in their profession. The aim of FPA is to elevate the profession that transforms lives through the power of financial planning.
SOURCE Innovative Portfolios