Using Options to Hedge and Enhance Stock Returns
Using Options to Hedge and Enhance Stock Returns
Options are financial instruments which give the holder the right, but not the obligation, to buy (call option) or sell (put option) a stock, at a set price price within a specified period (typically under three months).
In addition to being high-leveraged trading instruments, options can also be used for managing the risk in an investor’s stock portfolio as well as enhancing the overall portfolio returns. Historical stock data analysis suggests that the portfolio’s using options for […]


