Scott & Stringfellow has the resources to use common strategies that will allow you to achieve four goals: income, hedging, diversification, and wealth transfer.  The flexibility of these solutions allows us to customize a strategy that fits your circumstances.  In addition to the use of hedging solutions, we can help you with Cashless Stock Options Exercises and Restricted Stock Sales, two very effective risk management tools.  These solutions can be used for individuals, trusts, foundations, and some corporations.  Regardless of the entity, we have one common goal:  to help you reduce risk without lowering returns, minimize tax liabilities, and retain ownership of the shares.

Our Model
By serving as consultants, we feel that we can be more objective and focus strictly on your needs. Our trading desk does not play a role in which a conflict of interest may be present, as is the case with many dealers. By leveraging our relationships with multiple dealers, we are able to force some of our partners to compete with each other to get you very competitive pricing.  By going directly to a dealer whose trading desk assumes your share risk, not only is there a conflict of interest as they are taking a position counter to yours, but you also do not know if that firm is providing you with competitive pricing.  With our model, objectivity and competitive pricing is a natural byproduct.

Our approach when analyzing your situation is in-depth and consistent.  The process of developing a customized strategy for you usually tracks as follows:

Your Financial Advisor
Your first point of contact will be your financial advisor who will obtain all of your relevant financial information and will assess your investment goals, concerns, and risk tolerance.  In order to better narrow down the strategies that may be appropriate for you, your advisor will have to determine the following:

• The status of your stock including any potential legal restrictions
• Whether your goal is to increase your income levels, reduce your risk, defer taxes, or to develop a diversified portfolio
• Your risk tolerance, time horizon, and future financial needs

Your Customized Strategy
Once your financial advisor has pulled together your financial and investment profile, our expert on Concentrated Stock Solutions will develop a strategy which best fits your needs and will contact a number of exchanges and broker dealers in the industry to find you the best price possible. The strategy, along with all related costs, will then be presented to you by your financial advisor, often in conjunction with our internal expert.

Executing Your Strategy
Once you decide the recommended strategy is appropriate, we will assist you in determining the proper timing in execution.  Successful timing, as with most investments, is critical to maximize the benefits of your strategy. Once the timing appears ideal, we will again seek out as many competitive offers as possible to ensure the best execution for you. In addition, our Concentrated Stock Solutions expert will determine what the "fair value" for the strategy should be, to make sure you receive a fair price. Since Scott & Stringfellow will serve as agent in this transaction (rather than making a profit as a principal trader) we can be a true partner for you by maintaining all objectivity and focusing on what is best for you. 

Follow Up
Scott & Stringfellow will not abandon you once the strategy is in place.  We will monitor it until the expiration of the contract to recommend potential follow up strategies that may be optimal for you, including closing the original positions and/or establishing new positions.  Also, your financial advisor will continue to support you in the diversification of your portfolio.

Prior to buying or selling options, you should consult with your financial advisor about all of the potential risks and benefits associated with a particular strategy. This literature does not purport to be a complex description of the securities markets or any risks associated with trading options and derivatives. Since options strategies involve unique risk considerations, tax consequences, and commission costs, options are not suitable for all investors. Prior to receiving approval for options trading, investors must receive a copy of the Characteristics & Risks of Standardized Options, which can be provided to you by your financial advisor. Finally, you should consult a tax expert regarding any potential tax implications involved with any options strategy prior to placing a trade.