From active speculation to risk management, traders take advantage of the unique flexibility of options on a routine basis. However, in contrast to standardized futures products, trading options requires a bit more expertise. Let’s examine the mechanics of buying and selling options contracts.
Buying Put Options
As prudent, astute investors, I’m sure you have been watching this significant sell-off in the Precious Metals sector. If you bought or purchased Gold coins or bullion from 2010 to as recent as last month, you’re likely underwater. As a perpetual Bull on Gold, I understand how to manage risk and try to convey this to my clients.
Options are a great way to get involved with the futures markets. One of the most popular ways to trade with options is to buy puts.