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 www.cboe.com 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.
Options involve risk and are not suitable for all
investors. Prior to buying or selling an option, a person must receive a copy
of Characteristics and Risks of Standardized
Options (ODD). Copies of the ODD are available from your broker, by
calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North
Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this
website is provided solely for general education and information purposes and
therefore should not be considered complete, precise, or current. Many of the
matters discussed are subject to detailed rules, regulations, and statutory
provisions which should be referred to for additional detail and are subject to
changes that may not be reflected in the website information. No statement
within the website should be construed as a recommendation to buy or sell a
security or to provide investment advice. The inclusion of non-CBOE
advertisements on the website should not be construed as an endorsement or an
indication of the value of any product, service, or website. The
Terms and Conditions govern use of this website and use of this website
will be deemed acceptance of those Terms and Conditions.