Financial advisors may want to look at index straddles as a strategy to hedge against volatility in clients’ portfolios in the weeks ahead. That’s because volatility is short-term noise driven by shifts in investor sentiment. And typically during earnings season, clients focus on micro-fundamentals, such as price to earnings, forward guidance and revenue metrics. But […]
If markets are less fickle, then advisors are in a better position to offer investment recommendations based on economic fundamentals
Two options strategies require you to have a bullish longer-term view. The choice depends on the current level of volatility
Is there a particular options strategy that works all the time? The answer is no – just as it is with stock-picking or asset-allocation metrics. Despite that, some financial advisors market their options expertise by focusing on a specific strategy, such as covered-call writing, straddles or buying calls. What these advisors fail to understand is […]
Replacing bonds with straddles no longer exposes portfolios to the vagaries of higher interest rates but still provides a hedge should the market decline again
These bands take into account the risk metrics that determine an option's price and use those to frame an implied trading range
Consider this long-term strategy, which delivers great returns
Increased U.S. government spending will be a significant driver of GDP growth. Here's how to take advantage of it
Here's a unique options strategy with a great appeal: The certainty of time value erosion
This short-term forecasting tool can