One of the most common challenges we see with successful professionals is what to do with a concentrated stock position that has grown significantly over time. On paper, the gains look fantastic—but the stock isn’t paying income, and selling shares could trigger a large tax bill.
Recently, a client came to us with exactly this situation. Their shares were worth about $115 each, with a cost basis of just $40. Rather than selling and facing a hefty tax hit, we put a strategy in place to make the most of their position. By carefully implementing covered calls and cash-secured puts, we’re now generating about $5,000 per month in option premiums*.
Here’s what that means for them:
That $5,000 covers roughly half of their monthly living expenses.
They still own the stock and participate in its long-term potential.
They’ve transformed a concentrated position into a steady, somewhat predictable stream of income.
This type of strategy isn’t right for everyone, but for clients with highly appreciated stock and the right risk tolerance, it can be a powerful way to create income without immediately selling.
✨ The key takeaway: You don’t have to part with your winners to enjoy reliable cash flow. With the right planning, it’s possible to capture both growth potential and income.
Ready to take the next step?
If you’re holding a concentrated stock position, there are smart ways to turn that into reliable cash flow—without giving up growth potential.
Contact me at brian@hcwadvisor.com or (314) 779-2105 to see what’s possible for you.
*This is a real client experience.