Transition
VOLT™ Shield
The same exit, with a floor the whole way down.
A protective collar held across a tax-aware sell-down: a floor bought, a ceiling sold, and zero net option premium — transaction costs and advisory fees separate and disclosed.
Illustrative example
low-basis concentrated position → floored for the length of a multi-year sell-down
Drawn from a priced proposal, not an engagement. Indicative as of its run date.
The problem
A paced exit takes years, and the client carries the full downside of one company for every one of them. That is the objection that stops the glidepath before it starts: the plan is sound until the position falls 40% in month four and the remaining shares have to be sold into it. Buying puts outright costs premium every year, and most clients will not fund a hedge indefinitely.
How it works
Set the exit first
The sell-down schedule is the plan. The hedge exists to protect it, so the pace is decided before the structure is priced.
Put a floor under the schedule
A put establishes the level below which the position stops losing value. A call above the market funds it, which is what makes the package carry no net option cost.
Sell down against the floor
Shares come down on schedule while the collar holds. A decline no longer forces the exit to be renegotiated, because the floor is already in place.
What’s inside
Long put
The protective leg that defines the floor.
Short call
The financing leg that pays for the floor and sets the ceiling.
Scheduled sell-down
The tax-aware unwind the floor is protecting.
Continuous management
Rolls, upside participation and maturity decisions after day one, recorded and reported.
Who it’s for
- Clients who have agreed to exit but cannot carry a drawdown during it.
- Founders and executives holding a single low-basis position through a multi-year unwind.
- Advisors whose client wants protection without an ongoing premium bill.
Common questions
Does “zero net option premium” mean it is free?
No. It means the premium collected on the call offsets the premium paid for the put, so the option package itself carries no net cost. Transaction costs and advisory fees are separate and disclosed.
What does the client give up?
Upside above the ceiling. That is the trade: the call that funds the floor also caps participation, so the ceiling is set deliberately against how much upside the client wants to keep.
Can the floor be set anywhere?
The floor, the ceiling and the tenor move together. A higher floor costs more, which means a lower ceiling to fund it. We price the combinations and show the trade rather than defaulting to one shape.
How is this different from VOLT™ Accelerate?
The exit is the same. Accelerate funds it with covered-call income and leaves the position exposed on the way down. Shield holds a collar across the same schedule, so the downside is floored for the whole transition.
Does the client get cash now?
No. Shield protects the position; the proceeds arrive as the shares are sold. If the client needs to be diversified today, that is VOLT™ Shield + Diversify Now.
Request a proposal on VOLT™ Shield.
Position-specific analysis and an executable proposal in days. For investment advisers — your client, your custodian, your portfolio.
Partner with us →Also in Transition
VOLT™ Accelerate
Transition
Exit the position tax-aware, on a schedule.
VOLT™ Shield + Diversify Now
Transition
Diversified on day one. The sale, and its tax, happen later.
VOLT™ Sidecar
Transition
The hedge runs in a separate account. We never trade the client’s shares.
Elsewhere in the suite
Tax-Aware Equity Strategies
Protect & Monetize
Keep the position and the grants. Put the option book to work, tax-aware.
Box-Spread Borrowing
Financing
Borrow against portfolio margin capacity — managed so it does not become a margin problem.
Keep reading
Yayati Asset Management, LLC is a state-registered investment adviser. This material is for investment advisers only; it is illustrative, not an offer, and not tax or legal advice. Examples are drawn from priced proposals, not engagements; figures are indicative as of their run dates and tax outcomes are client-specific. Options involve substantial risk and are not suitable for all investors — read “Characteristics and Risks of Standardized Options.” “Zero cost” means zero net option premium; transaction costs and advisory fees are separate and disclosed. Hedges on correlated funds carry basis risk: fund and stock can diverge. Employee stock options are issuer-governed; monetization is subject to plan terms. Liquidity strategies involve margin and financing risk, and terms depend on the custodian. PLASMA™ is an investment technology platform operated by Yayati LLC; it is not an investment adviser.