Documentation
Learn how to use Parity to find and manage defined-outcome strategies tailored to your investment objectives.
Strategy Payoff Diagrams
Collar: Limited Upside, Protected Downside
Buy a put option (floor) and sell a call option (cap) on the underlying index. Losses are capped at the floor, gains are capped at the call strike.
Max Loss
-4%
Max Gain
+4%
How It Works
You keep gains up to +4%, lose max -4% even if underlying drops 10%.
Strategy Comparison Across Market Scenarios
See how a collar and buffer compare to unhedged ETF investing across different market scenarios.
- Unhedged ETF
- Collar
- Buffer
How to Use Parity
1. Define Your Parameters
Enter your maximum acceptable loss, desired return target, and investment time horizon.
2. Review Available Strategies
We'll show you collar and buffer strategies that match your criteria, with live pricing across multiple outcome periods.
3. Examine the Payoff
Review the maximum gain, maximum loss, and net cost of each strategy before committing.
4. Invest & Monitor
Once invested, monitor your position until maturity. Set alerts for key price levels if desired.
5. Manage at Maturity
At maturity, take your proceeds or roll into a new strategy. The choice is entirely yours.