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Investors' Options Toolkit

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Koen Hoorelbeke

Investment and Options Strategist

For stock investors looking to enhance performance and manage risk, options can offer a strategic edge. Our comprehensive toolkit is designed to show you how options can complement your stock investments, providing opportunities for better results and superior risk control. Dive into our guides and case studies to discover practical options strategies that can help you protect your portfolio and unlock new potential for growth.
Check out these guides and case studies:
In-depth guide to using long-term options for strategic portfolio management  Our specialized resource designed to learn you strategically manage profits and reduce reliance on single (or few) positions within your portfolio using long-term options. This guide is crafted to assist you in understanding and applying long-term options to diversify investments and secure gains while maintaining market exposure.
Case study: using covered calls to enhance portfolio performance  This case study delves into the covered call strategy, where an investor holds a stock and sells call options to generate premium income. The approach offers a balanced method for generating income and managing risk, with protection against minor declines and capped potential gains.
Case study: using protective puts to manage risk  This analysis examines the protective put strategy, where an investor owns a stock and buys put options to safeguard against significant declines. Despite the cost of the premium, this approach offers peace of mind and financial protection, making it ideal for risk-averse investors. 
Case study: using cash-secured puts to acquire stocks at a discount and generate income  This review investigates the cash-secured put strategy, where an investor sells put options while holding enough cash to buy the stock if exercised. This method balances income generation with the potential to acquire stocks at a lower cost, appealing to cautious investors.
Case study: using collars to balance risk and reward This study focuses on the collar strategy, where an investor owns a stock, buys protective puts, and sells call options to balance risk and reward. This cost-neutral approach, achieved by offsetting the cost of puts with the premiums from calls, provides a safety net and additional income, making it suitable for cautious investors. 
Further learning
If you're looking to deepen your understanding of options trading or wish to start from the basics, our Zero-to-Hero Educational Series provides a solid foundation in trading principles and advanced strategies:
  • From zero to hero - buying options  This article provides an introduction to options trading, covering the basics of buying and selling options, how to make money with them, and the risks involved.
  • From zero to hero - selling options  This article specifically provides an introduction to selling options, often called premium selling and how to make money with them, as well as the associated risks involved.
  • From zero to hero - option strategies  The article outlines how to manage risks and enhance potential rewards by using defined risk strategies like vertical spreads and undefined risk strategies such as strangles. It offers insight into choosing between debit and credit spreads and explains the terms commonly used in options trading. The piece serves as a guide for investors and traders seeking to better understand and utilize options strategies in their portfolio management.
  • From zero to hero - options lexicon  This article serves as an essential guide to options trading terminology, providing a comprehensive list of keywords for anyone engaged in options trading.
Related to options are of course "normal" call-options ... hear everything about that in episode 3 of our podcast series "Saxo Options Talk" by Koen Hoorelbeke and Peter Siks:
  • Options Talk - Episode 03 - Long Calls  Buying call options may seem straightforward, but there's more to it than initially meets the eye. In this episode, Koen and Peter break down why traders opt for long calls and how this approach significantly differs from traditional stock investing.
In "Episode 14 - Safeguarding Assets: Options for the Prudent Investor," "Saxo Options Talk" hosts Koen Hoorelbeke and Peter Siks shift focus to defensive strategies in options trading, ideal for investors looking to protect their stock, ETF, and index portfolio positions.
 


Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website.

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