Advisors Option: Mini Options
from The Advisors Option
Options 101: Mini Options What are mini options? Which underlying stocks? The SEC approved mini options on five underlying securities: Apple Inc. (AAPL), Amazon Inc. (AMZN), Google Inc. (GOOG), SPDR S&P 500 (SPY) exchange-trade fund, and SPDR Gold Shares (GLD) exchange-traded fund. What is the use case? Why would you not want to use mini options? Tricks of the Trade: The Right Skill Set Today we will discuss the options skill set that a good advisor should bring to the table: how to hedge. It's a critical skill, particularly in this market environment. Every advisor should understand buying puts. How to write calls:Generate income on an equity portfolio. Put it together:How to construct a collar. Understanding how high and low volatility impacts options prices. Writing puts instead of using limit buy orders for stocks. Understand basic vertical spreads. Listener Mail: Keep those questions coming in Question from C. Davis, Portland, ME. Did you guys hear the episode of NPRs Marketplace where the financial advisor slammed options as "riskier than penny stocks?" What do you think? Question from Dog Fan. How much should I reasonably expect to pay for a financial advisor who can do all of the things you discussed? Is there a set percentage or rule of thumb that I should go by? I imagine all of these skills would result in hefty fees.
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