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How can options help to protect your wealth?

Learn how to Protect your Portfolio

Trading options can be an effective way to protect your portfolio, just like buying an insurance policy to protect your house or car. If you are concerned that the market might fall, but you don’t want to sell your stocks for any reason (for example, because they provide a good dividend income, or you don’t want to crystallise a capital gain), then buying put options either on a broad market index or on some of your specific stock holdings can be prudent way to limit your downside risk.

Protect

Ways to Protect your Portfolio

At OptionsDesk we have created a wide array of articles in the Resources Hub that can be used to learn more about Options, how to trade them and how they can be beneficial to you. We strongly recommend checking out our Introduction to Options section if you are just starting out, this will give you an understanding of how options work and what style of Options trading suits you.

Check out some of our featured Protect articles below and remember, never hesitate to get in touch with one of our options trading experts.

Check out these Protect articles
21 July 2021
Hedging with Options Hedging can be a useful tool in your investment toolkit. It is used to reduce exposure to risk if an asset held in your portfolio may be subject to a Read more
20 July 2021
Protective Put This can be thought of as an insurance policy. This is commonly deployed when you own the underlying asset Read more
21 July 2021
Covered Call This is a way to enhance profits on a position that you already hold in your portfolio. Read more

Important information: Derivative products are considerably higher risk and more complex than more conventional investments, come with a high risk of losing money rapidly due to leverage and are not, therefore, suitable for everyone. Our website offers information about trading in derivative products, but not personal advice. If you’re not sure whether trading in derivative products is right for you, you should contact an independent financial adviser. For more information, please read our Important Derivative Product Trading Notes.

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