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Use Case

Building a New Position

Choose the downside, upside, and income tradeoffs before you buy.

Buying shares normally gives you full market upside and full market downside. Parity lets you compare other ways to enter the same investment.

Four ways to enter the same investment

Buy Unprotected

Full market exposure

Downside

Full market loss

Upside

Uncapped

Income

Dividends only

Buffer

Absorb the first part of a decline

Downside

First losses absorbed

Upside

Capped

Income

Dividends

Collar

Put a defined limit on downside

Downside

Defined maximum loss

Upside

Capped

Income

Dividends

Covered Call

Generate income from the shares

Downside

Full downside remains

Upside

Capped

Income

Option premium + dividends

Example: buying 100 shares of QQQ

Illustrative 1-year comparison using one 100-share position.

Unprotected

Full downside · Uncapped upside

Buffer

First ~10% protected · Upside capped near +16%

Collar

Maximum loss around 10% · Upside capped near +14%

Covered Call

Full downside remains · Income + capped upside

Illustrative only. Actual outcomes depend on live option pricing, expiration, dividends, and the contracts selected.

Start with the investment. Then choose the tradeoff.

1

Pick a stock or ETF

Choose what you want to own. Option strategies are typically built in 100-share increments.

2

Compare outcomes

See the downside, upside, income, and cost of each structure.

3

Build the trade

Take the selected trade to your own brokerage.

Important tradeoffs

  • Buffers and collars exchange some upside for downside protection.
  • Covered calls generate income but do not provide hard downside protection.
  • Option prices and dividends affect the final outcome.
  • Listed equity option strategies are typically modeled in 100-share increments.

See how concentrated your portfolio is.

After connecting your brokerage we'll automatically identify:

  • Concentrated positions
  • Cash sitting idle
  • Diversification gaps
  • Holdings eligible for outcome modeling

Connect your portfolio in under 60 seconds and see how much of your portfolio depends on your largest holdings.

Analysis only. No trades are created or submitted. Illustrative and educational; Parity does not provide investment or tax advice.

Parity

Protect what you’ve built while staying invested. Define your downside, understand your upside, and remain in control.

Parity Outcomes, Inc. is a technology provider and is not a registered investment advisor, broker-dealer or custodian. Parity does not provide personalized investment advice and does not place trades. Users independently select their parameters and enter every transaction at their own brokerage. Brokerage services are provided by the user's brokerage firm.

Options involve risk and are not suitable for all investors. Defined outcomes are illustrative estimates based on option pricing, market conditions, execution assumptions, fees, and the stated outcome period. Investors may experience losses, and outcomes are not guaranteed.

Parity displays available scenarios based on parameters you select. Parity does not place trades; you enter every transaction directly in your own brokerage account. Client assets are held at your brokerage firm; Parity Outcomes, Inc. does not take custody of client funds.

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