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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.