Monmouth Capital Advisors creates and implements yield enhancement and monetization strategies for institutional and individual investors. We utilize diverse strategies to create income streams, which in turn can potentially increase returns and provide limited downside protection. Our group encompasses a broad range of industry experience including: portfolio management, options trading, wealth management advisory services, and private equity investment management. The investment professionals of Monmouth Capital Advisors have held positions at Merrill Lynch, Credit Suisse First Boston, Mellon Bank, Donaldson Lufkin & Jenrette, Bear Stearns, Smith Barney, Goldman Sachs and JPMorgan Chase.

Working in tandem with our clients' existing financial advisors, we design customized option strategies and overlay them onto existing concentrated positions or portfolios. One such strategy is writing covered calls. Our team of trading professionals monitors and actively manages these programs on a daily basis. This proactive management style is designed to potentially improve cash flow, increase investment profitability and reduce volatility.

Additionally, Monmouth Capital Advisors provides monetization strategies for liquid and illiquid concentrated positions providing diversification, liquidity and downside protection.


The Covered Call Process

Covered call writing is either the simultaneous purchase of stock and the sale of a call option or the sale of a call option against a stock currently held by an investor. Generally, one call option is sold for every 100 shares of stock. The writer receives cash for selling the call but will be obligated to sell the stock at the strike price of the call if the call is assigned to his account. In exchange for being paid, the investor may give up any increase in the stock price above the strike price.


Overview of Covered Call Yield Enhancement Strategy

The principal strategy employed by Monmouth Capital Advisors to potentially enhance the yield of an existing stock portfolio or a portfolio of common stocks created by Monmouth Capital Advisors is to continually sell or "write" covered call options against substantially all the shares of stock. The options written are considered "covered" because the seller of the option owns the stock against which the options are written. The options written are of a duration and strike price that seeks to provide the highest expected return.

Please Note: Options are not suitable for all investors. Clients are advised to review the booklet "Characteristics and Risks of Standardized Options Positions." As we recommend these strategies when appropriate, you should know that complexity not well understood is itself a risk factor. Therefore, it is advisable, as in the case with all investments in options, to consult with knowledgeable advisors regarding potential economic and tax consequences of this strategy. While investment in options may enhance client returns, such investment may also result in greater risk of loss. The foregoing is neither an offer to enter into a transaction nor a solicitation of an offer to enter into a transaction. Monmouth Capital Advisors and 1st Worldwide Financial Partners do not give tax, accounting, regulatory or legal advice to clients. The effectiveness of any of the strategies described will depend on each client's situation and a number of complex factors. Clients should consult with their own advisors on the tax, accounting and legal implications of these proposed strategies before any transaction is effected. Information regarding specific recommendations will be supplied upon request. NO BANK GUARANTEE. NOT FDIC INSURED. MAY LOSE VALUE.

Monmouth Capital Advisors is a division of 1st Worldwide Financial Partners, LLC. Securities are offered through 1st Worldwide Financial Partners, LLC. Member FINRA,SIPC.

Please contact us to obtain a copy of the current Options Disclosure Document. Contact John Mahoney at 20 Avenue At The Common, Suite 201, Shrewsbury, New Jersey 07702.