Use Case
Protect What You Own
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. Parity lets you compare different ways to protect 100 shares - from income-based cushions to first-loss protection and defined maximum losses.
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
Covered Call
Income cushion
Buffer
First-loss protection
Collar
Defined maximum loss
Different structures protect in different ways. Parity shows the protection you receive and the upside you give up before you choose.
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 ways to keep the position while changing its risk.
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.