economy
Generate portfolio income when markets get rocky with these options strategies
Investors who are looking to bolster their portfolio's income may want to consider certain options strategies.
TL;DR
- Market volatility driven by geopolitical events and rising oil prices makes options strategies potentially attractive.
- Cash-secured puts involve writing a put option while holding enough cash to buy the stock, generating income from premiums and money market yields.
- Covered calls involve selling a call option on an owned asset, pocketing premiums but potentially forfeiting stock appreciation if the option is exercised.
- These strategies can provide income and complement diversified portfolios, but carry risks such as buying stock at a higher price or missing out on gains.