Conservative Options Trading

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Conservative Options Trading

Hedging Strategies, Cash Cows, and Loss Recovery


This eBook includes

Formats : PDF (Read Only)

Pages : 200

ISBN : 9781951527129

Language : English

About the Book

Book description

The world of options is considered high-risk by many. At its original options treading in the modern era began in the early 1970s when the first listed calls were offered on a short list of companies; a few years later, put trading was added.

Since this time, options trading has become available on most companies on large public exchanges. However, the high-risk reputation of options has persisted through the years, even as dozens of new and often conservative strategies have been introduced. Today, the best use of options is not to speculate on price movement but to hedge market risk in equity portfolios. Many strategies can combine hedging with income, establishing advantageous circumstances for risk-averse traders. It is possible to apply several strategies to reduce risk and in some instances, to eliminate market risk completely.

This book examines the many ways this can be accomplished, based on options for three highly-rated companies. These are qualified as the first step by exceptionally attractive fundamental attributes and trends: Higher than average dividend yield with dividend increases over at least 10 years; a range of moderate price/earnings ratios each year; growing revenue, earnings, and net return; and level or declining long-term debt as a percentage of total capitalization.

Conservative Options Trading

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Business Expert Press

Since 2008, Business Expert Press has been providing business students and professionals with precise, business information written by experts in their fields. Available in both print and eBook formats, our books can be obtained by consumers through a variety of sources including direct purchase on our website and major online bookstores. Business librarians can purchase our entire Digital Library, published and updated annually, in total, or in various configurations such as topical e-collections or custom bundles, through perpetual access or subscription.


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