Sample Option Strategies

Option strategies provide investors with an intelligent method for reducing the risk associated with investing. Options also provide the more aggressive investor with a method for achieving outstanding returns, albeit those higher returns do not come without added risk. Because options are versatile investment tools, a variety of strategies is available. Most are very easy to understand, and there is no need for the average investor to be concerned with complex strategies. A few examples follow.

Buy Puts to Insure a Long Stock Position(Also Called Protective, or Married, Puts)

When buying put options, the investor gets to own the most complete insurance policy—one that guarantees the ability to sell his/her stocks at ...

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