1. Hedging and Risk Management
Institutions often use options to hedge exposure in their portfolios. For example:
Buying puts to protect long stock positions from downside risk.
Covered calls to generate income while holding a stock.
Protective collars to limit both downside and upside.
This ensures capital preservation during volatile or bearish markets, a top priority for funds managing large client assets.
2. Income Generation
Institutions frequently deploy income-generating strategies using options:
Selling options (premium collection): They write puts or calls to collect premiums consistently.
Cash-secured puts: To potentially acquire stock at a lower price while earning a premium.
These strategies are popular with insurance firms, pension funds, and conservative funds aiming for steady cash flow.
Institutions often use options to hedge exposure in their portfolios. For example:
Buying puts to protect long stock positions from downside risk.
Covered calls to generate income while holding a stock.
Protective collars to limit both downside and upside.
This ensures capital preservation during volatile or bearish markets, a top priority for funds managing large client assets.
2. Income Generation
Institutions frequently deploy income-generating strategies using options:
Selling options (premium collection): They write puts or calls to collect premiums consistently.
Cash-secured puts: To potentially acquire stock at a lower price while earning a premium.
These strategies are popular with insurance firms, pension funds, and conservative funds aiming for steady cash flow.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.