Sentences with phrase «downside protection option»

We believe a hedged equity approach may be a better downside protection option given current market conditions.

Not exact matches

«The options market shows increased demand for downside protection.

For example, selling call options against stock positions you own can provide some downside protection and also produce a nice income stream.

Although options are a zero - sum universe, he can increase his income by selling options to investors who are looking for downside protection in their underlying positions.

While at the money options may provide less downside protection than out of the money options, downside protection is usually a much smaller consideration in a bullish market.

The Cambria Tail Risk ETF is an actively managed fund that holds mostly cash and treasuries while using the strategy of buying put options on the S&P 500 with the purpose of portfolio downside protection.

In the article Putting Options to Work, we'll explore these four strategies in more detail, discuss how to select a strike price, and touch on how basic options work with stocks for investors seeking income or downside protOptions to Work, we'll explore these four strategies in more detail, discuss how to select a strike price, and touch on how basic options work with stocks for investors seeking income or downside protoptions work with stocks for investors seeking income or downside protection.

In one interesting recent trade, a client used put options on iShares S&P / TSX Capped Energy Index ETF (XEG), presumably as downside protection on their energy stock portfolio.

If you are looking to purchase downside protection for stocks, then you want the VIX to be relatively low, making the premiums for put options inexpensive.

By selling a new option with more time premium you gain that much more downside protection (you lower your break even point by the difference between the option you buy back and the amount you collect for the new option you sell).

That's a reasonable choice but, many covered call investors who actively manage their positions like to roll their options when there isn't much time premium remaining to increase their downside protection.

Free Option: Shareholders have at least one year after the merger is consummated to choose downside protection or upside potential, as described above.

Free Option: Additionally, stockholders would have at least one year following consummation of the transaction to choose whether they want the downside protection or upside potential, as described above.

We believe the Board's failure to commit exclusively to a transaction that offers downside protection based on the Company's liquidation value suggests that the Board is considering other options, which will put the value of Avigen at risk.

You earn some time premium ($ 5 / share over 2 months in the above example) while enjoying some downside protection ($ 15 worth for 2 months, meaning the stock could drop from $ 100 to $ 85 during the 2 months and you'd come out even... the $ 15 loss on the stock is offset by the $ 15 in premium you received for the option).

The DRS is better described as a hedged equity approach, where there is explicit downside protection on the equity in the form of a long - term LEAPS put option.

Still, at present, there are enough headwinds from valuations, fiscal strains, unsustainable monetary policy, sovereign default risks, and other factors that we expect to maintain a «line» of downside protection with index put options even if we shift to a more constructive stance.

The plan is to write exchange - traded call options or FLEX call options (i.e. listed options that are traded on an exchange, but with customized strike prices and expiration dates) to generate income and some downside protection.

In order for the life insurance company to give you a floor of 0 % for downside protection, and to also give you some of the upside of the S&P 500 index, the insurer has to buy options.

The call options give you some, but not total, downside protection.

For example, here are two chocies for CTL along with their respective downside protections provided by the call option, as well as the annualized call premium yields:

ITM options are more conservative than OTM options because they have a larger amount of downside protection (lower break - even point).

It's a popular strategy because there is some downside protection and they can calculate in advance what their return will be if the call option is exercised and the stock is taken away.

The call option gives you some, but not total, downside protection.

If you are conservative you'll want to look at the rows that have a dark grey background in the Call Strike column — those are in - the - money options (where the strike is lower than the current stock price) that have more downside protection.

In exchange for putting a cap on your upside (by selling call options on your HYGH stock) you gain current income and some downside protection.

The patented option - trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered - call trade on iShares DJ US Oil Equipment Index (IEZ) that includes 5.50 % downside protection.

In exchange for putting a cap on your upside (by selling call options on your AXTA stock) you gain current income and some downside protection.

If you opted for the «downside protection» option for an additional 25 cents per gallon, heating oil would need to rise above $ 2.65 / gal before you broke even; however, you would have the peace of mind of paying a lower delivery price if the price of oil were to drop significantly.

The Downsides The lack of advanced features can be limiting, and increasing your options requires you to spring for the pricier McAfee Total Protection.

Given that the company is now in hibernation mode and a sale or liquidation is imminent, however — and the strong argument the dissidents have presented that shareholders face substantial risk if the board will not guarantee downside protection for their liquidity option — we believe shareholders would be best served by replacing the incumbent board with the dissident slate of nominees.»

All proposals contain a significant liquidity option (i.e., «downside protection») for stockholders that were attracted to that feature in the MediciNova proposal which was publically supported by BVF but, importantly, value Avigen above its current stock price.

In exchange for putting a cap on your upside (by selling call options on your XLQ stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your XLRE stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your TAHO stock) you gain current income and some downside protection.

Should the stocks go up and get called away, the «if called» returns would be much higher (likewise, should the stocks drop, there is less downside protection in these out - of - the - money options compared to their ATM and ITM counterparts).

A 2 month option will give you more premium than a 1 month option, which increases your downside protection.

The downside protection for the stock provided by the sale of a call is equal to the premium received in selling the option.

In exchange for putting a cap on your upside (by selling call options on your EFAV stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your QRVO stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your EFC stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your SYX stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your EFG stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your QSCI stock) you gain current income and some downside protection.

The Cambria Tail Risk ETF is an actively managed fund that holds mostly cash and treasuries while using the strategy of buying put options on the S&P 500 with the purpose of portfolio downside protection.

In exchange for putting a cap on your upside (by selling call options on your SZO stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your SYV stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your TAGS stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your TACO stock) you gain current income and some downside protection.

In exchange for putting a cap on your upside (by selling call options on your QNST stock) you gain current income and some downside protection.