Traditional buy-and-hold investing has been seriously challenged in the wake of the recent financial crisis. With economic and market uncertainty at a very high level, options are still one of the most effective tools available for managing volatility and downside risk, yet they remain widely underutilized by individuals and investment managers. In Options for Volatile Markets, Richard Lehman and Lawrence McMillan provide specific strategies to help with lowering portfolio volatility, protecting your portfolio against catastrophe, and tailoring your investments to the precise level of risk you are comfortable with.
While the core strategy of this new edition remains covered call writing, the authors expand into more comprehensive option strategies that can potentially offer deeper downside protection or even allow investors to attempt to capitalize on market or individual stock volatility. In addition, they discuss new offerings like weekly expirations and options on new index products. For investors who are looking to capitalize on global investment opportunities but are fearful of lurking "black swans", this book shows how to construct portfolios that may help protect against unforeseen calamities.
- A complete guide to the increased control and lowered risk covered call writing can potentially offer active investors and traders
- Addresses the changing investment environment and how options may be used to manage your portfolio
Understanding options is now more important than ever, and with Options for Volatile Markets as your guide, you'll quickly learn how to use them to help protect your portfolio as well as potentially improve its overall performance.