Options Can Buy You a Little Safety
Less enlightened investors typically associate options with tremendous risk in much the same way your mother might, for example, associate the drop-dead gorgeous redhead you bring home for Christmas dinner with the possibility that you'll never want to see your family again.
Given this site's family orientation, I'll leave the risk-reward analysis of the latter to Maxim, but not before trying to dispel the notion that conventional wisdom is typically wrong, whether it's applied to options or potential mates. If this has been historically true of options, it is even more true today. The market is primed for investors to use options for the most safe and stable of purposes: reducing risk.
Identifying the Trend
Increasingly, over the past week or so, there has been more talk of
Examining ETFsMike Schwartz, a senior options strategist, is spending much of his time trying to figure out how to pair options with exchange-traded funds for risk-averse investing.
| Enron vs. ETF
The Energy SPDR fares much better than Enron shares.
Merger speculators must have offered up sacrifices to the investment banking gods this week as their bets on a
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