Options 101: Mini Options
- What are mini options?
- Which underlying stocks? The SEC approved mini options on five underlying securities: Apple Inc. (AAPL), Amazon Inc. (AMZN), Google Inc. (GOOG), SPDR S&P 500 (SPY) exchange-trade fund, and SPDR Gold Shares (GLD) exchange-traded fund.
- What is the use case?
- Why would you not want to use mini options?
Tricks of the Trade: The Right Skill Set
Today we will discuss the options skill set that a good advisor should bring to the table: how to hedge. It's a critical skill, particularly in this market environment. Every advisor should understand buying puts. How to write calls:Generate income on an equity portfolio. Put it together:How to construct a collar. Understanding how high and low volatility impacts options prices. Writing puts instead of using limit buy orders for stocks. Understand basic vertical spreads.
Listener Mail: Keep those questions coming in
- Question from C. Davis, Portland, ME. Did you guys hear the episode of NPRs Marketplace where the financial advisor slammed options as "riskier than penny stocks?" What do you think?
- Question from Dog Fan. How much should I reasonably expect to pay for a financial advisor who can do all of the things you discussed? Is there a set percentage or rule of thumb that I should go by? I imagine all of these skills would result in hefty fees.
