Use Case
Protect & Define Your Outcome
Keep the shares you want to own while changing how much downside you take.
You do not have to sell a position to change its risk, and you do not have to pick option contracts yourself. Choose the protection, income, and upside you want, and Parity translates that into the option structure that creates it.
Outcomes are shown per 100 shares, since one option contract covers 100 shares. If you own more, the structure repeats.
Why not just sell?
Selling removes the downside, but it also removes the shares. For appreciated positions, selling may also create tax consequences. Parity lets you model how to keep the position while changing its risk.
What happens if your stock falls?
Illustrative comparison for 100 shares held through expiration.
Unprotected
Protection
None
Downside
Full decline
Exposure
All losses are yours
Upside
Uncapped
Covered Call
Protection
Option income
Downside
Income offsets the first part of a decline
After protection
Losses resume after the income cushion is exhausted
Upside
Capped
Buffer
Protection
First-loss protection
Downside
Initial losses absorbed
After protection
Losses resume below the protected range
Upside
Capped
Collar
Protection
Hard downside floor
Downside
Defined maximum loss
After protection
Loss is capped at the floor
Upside
Capped
Start with the outcome, not the options.
Protection level
Upside
Capped
Set by the protection level you choose.
Time
You choose
How much protection, potential income, and potential upside you want—and for how long
Parity
Parity shows you how
The exact trades needed to create it
Model protection for an investment you own
Enter an investment and the shares you own to compare how each existing approach changes the modeled downside and remaining upside.
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.