Episode 2: Playing Defense with Protective Puts

The Advisor’s Option Episode Two: Playing Defense with Protective Puts Options 101: Continuing Education: Graduating from the long call to the protective put The many uses of protective puts Speculative - using leverage to place a bearish bet Defensive - a “married put” can limit risk against the downside while maintaining the benefits of a long stock position The benefits of protective puts - maintain voting rights, collect dividends, maintain upside potential, limit tax liability No free lunch - puts can be expensive Finding the sweet spot between buying too much insurance and paying too much time decay Put options vs. stop-loss order - which is preferable? Tricks of the Trade: How to introduce the idea of portfolio protection to your clients Options are appropriate for every level of risk tolerance How to take the emotion out of the advisor/client relationship using options Practical tips for implementing puts into your practice Read more: http://www.theoptionsinsider.com/radio/?id=330#ixzz1n9oBMUh8 The Options Insider: Your Inside Source For Options Information