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WHAT ARE MY OPTIONS? Pt 2

By Megan Kowalski on September 21, 2021

Now that we have covered the general option terms and concepts, it is time to understand the four basic option strategies. If you have not had a chance to read through Part One, please take a moment to cover that blog first as they build on each other.

Four Primary Option Strategies: Call vs. Put

For all the visual learners like me!

As you can see above, there are two bullish strategies, buying a call or selling a put, in which investors think the market will move up over the time period. Whereas the bearish strategies include short calls and long puts in which investors believe the market will go down over the set period of time. There is a place for any of these strategies with market fluctuations depending on an investor’s outlook. Additionally, one can take measures to further leverage or de-risk their exposure by combining two or more of the strategies covered above.

Overall, options can be extremely powerful tools to help investors enhance or protect their wealth if used correctly. As mentioned previously, there is increased risk when working with options, so make sure to do your homework or work with a professional.

I hope that today’s blog has helped sharpe-n your knowledge of the investment landscape. If you have any topic suggestions or have further questions, please reach out to mkowalski@hightoweradvisors.com.

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The Lerner Group is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. All information referenced herein is from sources believed to be reliable. The Lerner Group and Hightower Advisors, LLC have not independently verified the accuracy or completeness of the information contained in this document. The Lerner Group and Hightower Advisors, LLC or any of its affiliates make no representations or warranties, express or implied, as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. The Lerner Group and Hightower Advisors, LLC or any of its affiliates assume no liability for any action made or taken in reliance on or relating in any way to the information. This document and the materials contained herein were created for informational purposes only; the opinions expressed are solely those of the author(s), and do not represent those of Hightower Advisors, LLC or any of its affiliates. The Lerner Group and Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax or legal advice. Clients are urged to consult their tax and/or legal advisor for related questions.

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