Put Option Strategies for Smarter Trading: How to Protect and Build Capital in Turbulent Markets

1. The Flexible Nature of Options: Risks for All Levels

Are you investing in companies or in the prices of their stock? A lot of emphasis is placed on the difference between “value” and “growth,” but perhaps a more important distinction should be made between what you invest in. If you follow the fundamentals, you are probably investing in the company; if you are a technician, your interest is in the stock and its price movement.

In either case, buying and selling stock are not the only alternatives you have. In fact, the volatility of the market, by itself, makes the case that just using a buy-and-hold strategy is very high risk when markets are volatile. All you need to do is to compare prices of some of the best-known companies between the ...