Question

We are in calm financial markets and you think they will remain as such but your client is risk averse. You are recommending a particular technology company which you think has a great near-term outlook. Your client wants to dabble in options but also wants to own the underlying stock and respects your outlook. What would you recommend they do?

2-3 paragraphs please

Answer 1

Answer:

Subsequently we may need to recommend an item that is in blend of the choice and the stock, an okay speculation to coordinate his hazard hunger.

1. Purchase the hidden stock, and furthermore purchase a put alternative:

• This would fence the danger of the fundamental stocks smashing , purchase the put choice, which would remunerate any misfortunes made. Anyway this procedure can be utilized to just relieve hazard and not be a supporting methodology.
• For example the put alternative can be for an amount of stock muhc lower than the fundamental stock, along these lines misfortunes are incompletely secured, be that as it may if there is a major addition, the increases are likewise not cleared out by this methodology.

2. As a rule if there are quiet monetary standpoints choices probably won't yield cash , if there are very upside down occasions ahead one approach to fiddle with choices is have both call and put alternatives on the hidden.

• In the event that either advertise rises, or falls in a major way, both of the choices can be practiced bringing about a benefit .
• Purchase and hold technique with the stock would bode well if a stable