OPTIONS STRATEGY: HOW TO MAKE MONEY AND HEDGE YOUR PORTFOLIO WITH OPTIONS

WELCOME TO MY CHANNEL GOOD PEOPLE. IN THIS PRESENTATION I WILL EXAMINE THE BENEFITS OF OPTIONS AS AN INVESTMENT INSTRUMENT FOR INVESTORS. WHAT I AM TRYING TO SAY? YOU SEE AS A INVESTOR YOU SHOULD KNOW HOW AND WHEN TO DEPLOY OPTIONS TO HEDGE YOUR PORTFOLIO. A GOOD EXAMPLE IS NOW IN THE SECOND QUARTER OF 2021 WHEN MOST OF THE STOCK NOSE DIVE. I AM SURE YOU ARE AWARE THAT EVEN THE TECH STOCKS ARE NOT SPARE AS THEY HAVE EXPERIENCED A SIGNIFICANT DROP AS INFLATION LOOMS LARGE WHILE HIGHER INTEREST RATES SEEM INEVITABLE.

So what is options? good question OPTIONS IS A FINANCIAL CONTRACT THAT GIVES OR EMPOWER THE BUYER TO SELL 100 SHARES OF STOCKS AT OPTION’S STRIKE PRICE AT OR BEFORE A SPECIFIED TIME PERIOD NOW I WILL EXPLAIN THE KEYWORDS IN THE DEFINITION
STRIKE PRICE IS THE PRICE AT WHICH AN OPTION BUYER CAN BUY OR SELL 100 SHARES UPON EXERCISING THE OPTIONS- (IT IS A LAID DOWN PRINCIPLE)
SPECIFIED TIME IS THE DATE AT WHICH THE OPTIONS POLICY YOU OR I IMPLEMENTED CEASE TO TRADE ON THE MARKET OR EXPIRES WORTHLESS
Okay now let us look at the Benefits of Options