Explore Your Options by Jay Kaeppel
USING OPTIONS TO PROTECT YOUR STOCK & ETF PORTFOLIO
With the stock market doing so well I am getting nervous that it might be doing “a little too well.” I would like to reduce my risk in the market but am also not comfortable with selling my stock holdings and incurring tax liability. Is there something I can do with options to help protect my portfolio?
Of course. Hedging—along with expressing a market opinion and generating income—is one of the three primary uses for options ...