business newsOption Trading Tips for Anxious Investors: Try an Apple (NASDAQ:AAPL) Put
By
Schaeffer's Investment Research
Oct 01, 2012 10:20 am
Expert tips, tricks, and strategies to protect your portfolio.
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At this stage in the global economic recovery, the daily financial headlines are about as sunny and upbeat as your average Edgar Allan Poe story. On any given day, investors might be panicking over the death of the euro, China's hard landing, the U.S. fiscal cliff, or -- that perennial standby -- political turmoil in the Middle East.
Here at Schaeffer's, we take a slightly more pragmatic view. As contrarians, we generally try to avoid following a panicked herd of retail traders over any kind of cliff (whether fiscal, figurative, or somewhere in between). That said, it's never a bad idea to hedge your bets against the worst-case scenario, especially if these cautionary measures help to keep your anxiety levels to a dull roar. After all, we're in this market, too -- and a tidal wave of panic-selling won't do anyone's 401(k ) any favors.
Every week, Senior V.P. of Research Todd Salamone shares our Monday Morning Outlook, where he highlights the key technical levels and sentiment indicators that could influence the market's short-term direction. If you're looking for actionable ideas and timely trading tips to stay proactive in a wild market, be sure to check out Todd's commentary each week.
And in the meantime, here's a roundup of our best expert advice on volatility, the fine art of hedging, and all-around disaster-preparedness to gird your portfolio for the End of Days. (You know... just in case.)
Tip No. 1: Forget the "Bernanke put." Try some Apple (NASDAQ:AAPL) puts instead.
Here at Schaeffer's, we take a slightly more pragmatic view. As contrarians, we generally try to avoid following a panicked herd of retail traders over any kind of cliff (whether fiscal, figurative, or somewhere in between). That said, it's never a bad idea to hedge your bets against the worst-case scenario, especially if these cautionary measures help to keep your anxiety levels to a dull roar. After all, we're in this market, too -- and a tidal wave of panic-selling won't do anyone's 401(k ) any favors.
Every week, Senior V.P. of Research Todd Salamone shares our Monday Morning Outlook, where he highlights the key technical levels and sentiment indicators that could influence the market's short-term direction. If you're looking for actionable ideas and timely trading tips to stay proactive in a wild market, be sure to check out Todd's commentary each week.
And in the meantime, here's a roundup of our best expert advice on volatility, the fine art of hedging, and all-around disaster-preparedness to gird your portfolio for the End of Days. (You know... just in case.)
Tip No. 1: Forget the "Bernanke put." Try some Apple (NASDAQ:AAPL) puts instead.
- To lock in profits or limit losses on individual equity holdings, the protective put is a classic -- and for good reason. This hedging strategy curbs your downside risk for a minimal cash outlay, and it's simple enough for even the greenest of options rookies to execute.
- Learn the nuts and bolts of protective put options.
No positions in stocks mentioned.
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