A Possible Choice For Your Portfolio

 

One of the more adaptable investments accessible today is options. Conservative investors will like the lower risk and potential for higher returns per dollar invested compared to individual equities, while aggressive investors will love the enhanced leverage and market exposure they provide with very little invested cash. Options, on the other hand, follow a different set of rules than stocks. Your SGI Securities Financial Advisor's advice is crucial when considering whether options are a good fit for your portfolio.

 

Values And Benefits

 

A contract between a buyer and a seller based on an underlying asset or security is known as an option. The holder of this contract has the option to buy or sell shares at a fixed price (the exercise price) for a set length of time (before expiration). With options, the idea is to try to predict the future value of the underlying asset. Listed equity, stock index, bond, and currency are all options.

 

Benefits Of Options

 

Options provide the following benefits:

 

-- The possibility of earning more money per dollar invested. Purchasing an option, for example, is frequently less expensive than purchasing each stock directly.

-- Market restrictions typically connected with stocks, such as short-selling restrictions, do not apply.

-- Diversification of the portfolio

 

Wouldn't everyone want to invest in options if they had these advantages? Options provide advantages, but they also have qualities that make them less appealing to some investors, such as the risk of losing money, time sensitivity, and volatility. Because of these problems, you should always obtain professional guidance and periodically assess your particular financial circumstances to ensure their suitability for your portfolio.

 

Find A Financial Advisor

 

Trying to figure out if options are a good fit for your portfolio can be difficult and time-consuming. Your SGI Securities Financial Advisor can assist you in determining whether or not they are appropriate for your risk and investment profile.