Option strategies have been used for years to manage risk and enhance returns. They can be very useful to individual investors. When you hire a certified financial planner or advisor, your team will assess what strategies will work best for your financial situation. Because of the sophistication of options, they may be difficult to understand without the experience and advice of a professional. When you sit down with your advisor, they will explain how different options strategies can help you. Once you have determined your financial goals, they will find the best strategy to maximize your return and limit your risks.
Advantages of Options Strategies
Our team has spent years gaining the knowledge and expertise needed to use options strategies to your financial advantage. Here are some ways they will help you achieve your goals:
- In a ranging stock market, selling a covered call against your long stock position may increase your retirement income and the return on the investment.
- Adding a collar strategy in a trending down market can limit your downside risk. A collar means selling a call which is covered by your long stock position and using the premium received to buy a put. As the market price of your stock goes down, the put increases in value.
- Finally, options offer more alternatives for your investments. This leaves room for profit in every type of market.
Option Strategies for Investors
While there are risks to option strategies, your potential for return can be greater than regular stock investments, especially when you use a professional financial consultant. Whether you look for long-term or short-term investments, you can benefit from cost savings and greater financial return. Talk to an expert member of our team to determine the best options for your financial goals. At O’Connor Portfolio Management, we are dedicated to bringing you the success you desire while we do the work!