Retail investors that have done a little bit of homework widely accept that Exchange Traded Options, when used in conjunction with a portfolio of shares, can provide more stable long-term returns. It pays to find out about option strategies that help reduce risk and improve returns.
One of the most popular strategies is protecting your shares
Options are often referred to as risky derivatives and overlooked by every day investors. However, when used correctly they can reduce the risk of investing in shares. Similar in purpose to buying insurance on your house or car, put options can ensure you don’t lose significant amounts of capital from a disaster like a crash in the market.