Options
Capital Ingenuity can teach you everything you need to know about options.

There are two kinds of options: calls and puts. A single "call" option gives its owner the right, but not the obligation, to buy 100 shares of a specific stock, at a specific price, up to an including a specific date in the future. A single "put" option gives its owner the right, but not the obligation, to sell 100 shares of a specific stock, at a specific price, up to and including a specific date in the future.

Options are one of the most misunderstood investment vehicles on the market. The media, as well as many financial advisors, often say that options are too risky for most people to get involved. While this can be true under certain circumstances, such a statement is a broad generality that can lead investors to miss some highly conservative and profitable strategies.

Options do involve special and unusual risks different from many other kinds of investments. It is possible, and sometimes likely, to lose all of your money using certain options strategies. However, there are also certain strategies that can protect your portfolio against losses, provide higher income from stocks you already own, or control stock with less capital and risk that purchasing stock outright. At Capital Ingenuity, we help clients understand various options strategies and the risks and benefits associated with them.