How Options Can Help Your Portfolio

Although the terminology may take some getting used to, options are just another investing tool for generating income or protecting you from a market sell-off.

For some people, options trading conjures either fantasies of instant riches or nightmares of losing everything. But those are the visions of market-timing speculators, not long-term investors. For most investors with a long-term view, trading options is a way to protect individual stocks or an entire portfolio from a downturn. Moreover, used conservatively, options can generate cash in amounts that far exceed the average dividend. This guide is meant to walk you through some of the basics.

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Contributing Writer, Kiplinger's Personal Finance
Michael Shulman is the editor of Options Income Blueprint, a trading and coaching service. His latest book is Options: More Than a Primer. F