In Today's Volatile Market, Options Are No Longer Optional

Maybe you buy or trade stocks, bonds and mutual funds. Perhaps you invest in a 401(k) plan. You've come to for information and education about options and how they can be used as part of your short or long term investment objectives. Some investors use options on stocks or cash indexes to protect the value of their portfolios. A major advantage of options is their versatility. They can be as conservative or as speculative as your investing strategy dictates. Options enable you to tailor your position to your own set of circumstances and to your market outlook.

Make sure you're ready for the next market move. To learn more, review the strategy discussions below and test your knowledge with our interactive worksheets.

Strategy Discussions with Interactive Worksheets:

Buy Protective Index Puts to Hedge a Portfolio
Buy Index Puts Outright in Anticipation of a Market Correction
Buy Protective Equity Puts as a Hedge
Buy Calls to Benefit from a Rise in a Stock Price

Additional strategy information can be found at this Web site in the following locations:

Portfolio Protection and Stock Index Prices

To protect their equity portfolios investors can use strategies such as protective puts and collars with index options. The CBOE offers options on about 40 different stock indexes. Volume in CBOE index options has risen in 2001. Here are charts with stock index prices.

Customers' Comments:

      (Acrobat Format)

Greg McMurran
Chief Investment Officer
Analytic Investors

Robert D. Arnott
President and CEO
First Quadrant

Charlie Jacklin
EVP and Chief Investment Strategist
Mellon Capital Management Corp.

  VIX Snapshot

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