Options  |  BON 2009

Puts and Covered Calls For Newbies by Moses Sanchez

Puts and Covered Calls For Newbies by Moses Sanchez Options are complex vehicles but useful for conservative traders who want to purchase their favorite high-yielding dividend stock without having a large downside risk. Here’s how you can trade options even if you’re just starting out as a trader. IN this trading environment, a beginner trader may worry about jumping in to buy their favorite stock. That concern is justified, with recent volatility hitting record highs. So what are novice traders supposed to do in order to protect their investment and feel confident about it? Most beginner traders do not want to short stocks, and I would not recommend them to do so. But buying puts on their trades is a good strategy for any beginner and easy to implement. The most difficult part of this strategy is learning about options themselves.

by Moses Sanchez