Parametic Option Overlay Strategies

Option overlay strategies offer a way to enhance returns on your clients' existing assets. These strategies are designed to smooth out return characteristics, lower portfolio volatility or create an additional source of income — without making changes to the underlying portfolio. Parametric employs a systematic, repeatable, rules-based approach to managing options. Strategies are constructed using proprietary, risk-based systems and managed by a staff of dedicated portfolio managers and trading staff who monitor each client’s positions in real time.

DeltaShift Portfolio DeltaShift Risk-Managed Put Selling (RPS) Option Absolute Return Strategy (OARS) Dynamic Hedged Equity (DHE)

DeltaShift	Actively managed covered call writing program Overlaid on single stocks and select ETFs Designed to maintain significant upside exposure in rising markets Seeks to reduce volatility and enhance total return by 2% – 5% (net of fees) per year   Learn More: DeltaShift Strategy Overview » Back to top
Portfolio DeltaShift	Actively managed index covered call writing program Overlaid on a portfolio of stocks correlated to the S&P 500 Index, Russell 2000 Index or MSCI EAFE Index Designed to maintain significant upside exposure in rising markets Seeks to reduce volatility and enhance total returns by 1% – 3% (net of fees) per year   Learn More: Parametric Option Overlay Strategies Flyer » Back to top
Risk-Managed Put Selling (RPS)	An S&P 500 Index put option spread selling strategy Overlaid on any marginable security (bonds, cash, stocks, etc.) Pursues returns that are uncorrelated with fixed-income investments Seeks to increase returns on underlying collateral by 1% – 4% (net of fees) per year   Learn More: Parametric Option Overlay Strategies Flyer » Back to top
Option Absolute Return Strategy (OARS)	An S&P 500 Index put and call spread selling strategy Overlaid on any marginable security (bonds, cash, stocks, etc) Pursues returns that are uncorrelated with traditional investments Seeks to increase returns on underlying collateral by 2% – 6% (net of fees) per year   Learn More: Parametric Option Overlay Strategies Flyer » Back to top
Dynamic Hedged Equity (DHE)	Actively managed hedging program utilizing costless collars Overlaid on a portfolio of stocks to reduce volatility compared to the underlying index Seeks to mitigate downside risk   Learn More: Parametric Option Overlay Strategies Flyer » Back to top

Fund share values are sensitive to stock market volatility. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging countries, these risks may be more significant. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.

Investing entails risk, and each investment strategy listed is subject to specific risks, highlighted below.

Equity: Equity investment values are sensitive to stock market volatility.

Volatility: While certain funds have a targeted annual performance volatility range, their actual, or realized, volatility for longer or shorter periods may be materially higher or lower than the target range, depending on market conditions.

Taxes: Market conditions may limit the ability to generate tax losses or to generate dividend income taxed at favorable tax rates. The ability to utilize various tax-managed techniques may be curtailed or eliminated in the future by tax legislation or regulation.

Option strategy risk: The effectiveness of an option strategy is dependent upon a general imbalance of natural buyers over natural sellers of index options. This imbalance could decrease or be eliminated, which could have an adverse effect on a client portfolio.

Option overlay: An investor that sells an index call option incurs a liability in exchange for the up-front receipt of the option premium received. There is no guarantee that the investor’s portfolio will accurately track the index performance. This liability may result in the needed sale of assets. Participation in the program includes the purchase of put options or put spreads. There is no guarantee that the index put options included in the program will effectively protect the investor’s actual portfolio holdings. The actual performance of the investor’s portfolio may underperform the index and result in significant losses for the investor. The purchase and sale of options and the sale of investor assets may produce tax consequences for U.S. taxpayers. In the event of required asset sales, substantial capital gains taxes could be incurred. Discuss with your personal tax advisor how selling call options, purchasing put options or put spreads, and any potential sales of investor assets may affect your tax situation.

Advisory Services described here are offered through Eaton Vance Management and Parametric Portfolio Associates LLC. Investors should contact their financial advisor, as not all investments are suitable for all investors.

Past performance is no guarantee of future results.