Stocks
You buy or trade stocks, bonds and mutual funds. Perhaps you invest in a 401(k) plan. Did you know you may be using a form of options as part of your everyday life Do you pay a premium every quarter for house, auto, and medical insurance You have purchased insurance as a safeguard against a fire in your home, a crash in your car, or large medical bills. Some investors use options on stocks or cash indexes to protect and insure the value of their portfolios.
A major advantage of options is their versatility. They can be as conservative or as speculative as your investing strategy dictates. Options enable you to tailor your position to your own set of circumstances. Consider the following benefits of options:
?· You can protect stock holdings from a decline in market price
?· You can increase income against current stock holding
?· You can prepare to buy a stock at a lower price
?· You can position yourself for a big market move even when you don t know which way prices will move
?· You can benefit from a stock price rise without incurring the cost of buying the stock outright
There are many strategy discussions for the new
option, stock, options, price, premium, right, put, time, expiration, buyer, xyz, underlying, shares, sell, date, buy, position, call, risk, market, buying, exercise, 100, you, profit, paid, before, $50, stocks, series, puts, purchase, potential, june, july, individual
