Do you have the Option Advantage?
Catch up with the smart investors and get the ADVANTAGE
Go beyond stocks and take your trading to the next level. Get the Option Advantage eBook and learn the 8 reasons why options work for the smart investor.
We’ll show you how to think about the risk management, cash efficiency, leverage, and the advantages that options have over stocks. Learn how to put the odds in your favor with the Option Advantage!
You’ve probably heard that options are riskier than shares of stock. The reality is that it depends on how they’re used.
Options provide a natural form of leverage because they allow you to capture dollar-for-dollar moves in the stock’s price at expiration – but for a lot less money.
You can use puts on a single index to protect an entire portfolio, regardless of the stocks you’re holding. It’s a concept called portfolio protection, and there’s no way to get it with any asset other than options.
About the Authors
Jon ‘DRJ’ Najarian
Jon has earned a reputation in the industry as an options trading expert and pioneer. He developed and patented trading applications and algorithms used to identify unusual activity in stock, options, and futures markets. Jon can be seen weekly on CNBC, where he is cast member of the “Halftime Report” and the “Fast Money” show. He is also the feature of the “DRJ Report” on CBOE-TV, the exchange’s popular webcast.
Pete Najarian, the “Pit Boss,” was ranked one of the top 100 traders by Trader Monthly magazine and in 2005 co-founded, together with his brother Jon “DRJ” Najarian, the options news and education firm optionMONSTER, and leading online brokerage firm tradeMONSTER. Both were acquired in 2014 by private equity firm General Atlantic Partners. Pete is one of the “Fast Money Five” on CNBC’s “Fast Money” as well as a cast member of CNBC’s “Halftime Report”. He also contributes to CBOE-TV, the exchange’s popular webcast.
Ron is one of industry’s leading educators and mentors. He started on the floor of the Philadelphia Stock Exchange, first working on the Foreign Currency Options Floor before moving to the Equity Options Floor for well-known technical and analytical traders Cooper, Neff and Associates. Having established a reputation for cutting-edge training, Ron was tapped to serve as partner and Chief Options Strategist for Options University, and wrote the acclaimed book Option Theory and Trading. Today, Ron is a professional investor, leading educator and media analyst.