Stocks & Commodities V. 28:5 (45, 99): Explore Your Options by Tom Gentile

Stocks & Commodities V. 28:5 (45, 99): Explore Your Options by Tom Gentile
Item# \V28\C05\095EYO.PDF
$2.95
Availability: In Stock

Product Description

Explore Your Options by Tom Gentile

PORTFOLIO PROTECTION

I have a longer-term portfolio of stocks that Iíd like to protect against any repeat performances of 2008 into March 2009. How can this be done with options?

Thatís a good question, but the answer doesnít lend itself to one size fits all. Depending on how many stocks are in your portfolio, call and put liquidity within those individual issues, your risk and reward preferences, and how much time youíre willing to allocate to managing positions will lead to very different courses of action in the option market.

An investor with long-term holdings in a handful of stocks with liquidly traded options might consider actively managing each situation separately from his or her other holdings. The time required to maintain a portfolio hedged with options shouldnít be prohibitive, even if that person works full time and canít commit to monitoring the market throughout the day.

In this situation, many investors look at establishing either buy-writes or collars on their stocks. The former, the most popular strategy with investors, takes in premium by selling a call one-to-one against the amount of shares held in the underlying and has the effect of reducing the cost basis of the position.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order