The Use of Options in Investing from the Perspective of Financial Consultants and Individual Private Investors

Abstract

The author interned with the financial services firm, Merrill Lynch, working for a financial consultant who managed high net worth client portfolios. The author’s responsibilities included administrative duties that assisted the consultant in preparing for client meetings, gathering research information, and evaluating stocks for recommendation. The author discusses option trading, pricing, and strategies. Through call writing, selling protective puts, using spread and straddle strategies as well as combination strategies investors can achieve their specific goals. Overall, options are a practical investment tool that should be considered by all investors who wish to lower risk and take advantage of market fluctuations.