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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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