Sunday, July 10, 2011

Do Markets Correct? Reviewing Your Policies

James Gornick submits:

Time to review your Insurance Policy for these turbulent markets moving ahead into 2012. Have your nest eggs been protected? Have you fine-tuned your portfolio in the event of a severe market correction?

Review your options--literally

Using ETFs and certain stocks, you can hedge the indexes or sectors providing prudent buying of put options. Below you will find a list of ETFs from Dorsey Wright and Associates Research. Using options to buy your protections in a market wanting to go higher over these past three weeks of trading seems crazy (right).

Get to know how to use options to insure your positions. Outright Options can be found deeply discounted due to the volatility creeping back into the backdrop of oversold and when issues become overbought. It seems this market is giving both in these past few weeks.

The majority of traders who are new to options can understand the workings

Complete Story »

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