Chicago-based options-focused firm SpiderRock Advisors announced plans to offer its customized option overlay strategies to clients via the Envestnet platform.
SpiderRock President and CIO Eric Metz commented that 2020 has brought risk management front and center to client conversations and portfolio construction.
“The timing of this initiative is extremely fortuitous as the capital market landscape is causing an unprecedented demand for options-based strategies and solutions,” Metz added.
The $1.5 billion firm plans to offer strategies to hedge concentrated stock positions and broadly diversified portfolios in addition to income-generation strategies using put writing and call writing. There are eight strategies in total via the Envestnet custom SMA offering.
The Envestnet platform serves both institutions and the RIA marketplace.
“We are pleased to have SpiderRock’s option overlay strategies on our platform,” said Jean Heath, head of asset manager network for Envestnet. “We have seen an increased demand from clients for this type of solution and look forward to working with them to ensure our financial wellness platform continues to meet the needs of advisors and their clients.”