After the last 12 months, investors have a greater understanding about the risks involved with investing in stocks. Perhaps we have all realized that we do not have as much tolerance for risk as we thought we had.
In particular, those nearing retirement have gained renewed appreciation for owning fixed income investments and living debt free. Some maybe questioning whether stocks should be included in their investment portfolio at all, which I would answer yes, but that's an issue for another day.
So how can one go about making money or preserving what he or she has in a volatile market like the one we are witnessing today? Investors should consider using call and put options or structured notes to help reduce the risk of their current investments through broader diversification, and to potentially increase returns.
Call and put options can be used to either speculate on the moves in the market or to hedge your investments against a decreasing market. A call option gives you the right, but not the obligation, to buy an investment in the future at a price agreed upon today. Conversely, a put option gives you the right, but not the obligation, to sell an investment in the future at a price agreed upon today. Call and put options have been used by stock market investors essentially since markets first came into existence.
Structured Notes are prepackaged investment products that use puts and calls to hedge and/or speculate on stock market moves. Investors should consider investment strategies that are designed to reduce your investment risk and be additive to investment returns.
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In particular, those nearing retirement have gained renewed appreciation for owning fixed income investments and living debt free. Some maybe questioning whether stocks should be included in their investment portfolio at all, which I would answer yes, but that's an issue for another day.
So how can one go about making money or preserving what he or she has in a volatile market like the one we are witnessing today? Investors should consider using call and put options or structured notes to help reduce the risk of their current investments through broader diversification, and to potentially increase returns.
Call and put options can be used to either speculate on the moves in the market or to hedge your investments against a decreasing market. A call option gives you the right, but not the obligation, to buy an investment in the future at a price agreed upon today. Conversely, a put option gives you the right, but not the obligation, to sell an investment in the future at a price agreed upon today. Call and put options have been used by stock market investors essentially since markets first came into existence.
Structured Notes are prepackaged investment products that use puts and calls to hedge and/or speculate on stock market moves. Investors should consider investment strategies that are designed to reduce your investment risk and be additive to investment returns.
News Source - Click Here for Read Full News
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