Hedging With Options: How A Put Option In SPY Can Protect Your Portfolio

[Option Beast]( 10/30/2021 | [View in browser]( --------------------------------------------------------------- [Hedging With Options: How A Put Option In SPY Can Protect Your Portfolio]( Options can be used to generate extra income like this trade on Arbor Realty Trust (ABR). But they can also help protect a stock holding from a large drop in price. This column focuses on the art of hedging with options. When traders feel worried about a downturn in the market, they can look at buying some protection via put options. A put option is a financial contract that gives the holder the right, but not the obligation, to sell a certain underlying asset at a certain price on or before expiration. For this right, the buyer of the put option pays a premium to the option seller. Think of it like buying insurance against your house burning down. You as the homeowner pay the insurance premium. And the options seller acts like the insurance company. Owning a put option gives the owner the right to sell their stock at a certain price, no matter how low it goes. So, the owner earns downside protection, and still gets to benefit on the upside. [More...]( SPONSORED CONTENT [This Trading Book Sells For $19.95 On Amazon. Yours Free.]( Simple Options Trading for Beginners retails on Amazon for $19.95. But for a limited time only, you can download a free copy directly from the author. [Click here to grab the best-selling book for FREE.]( [Reflections: Bitcoin Gets Serious - by David Sager]( All three major indices posted gains for the week, boosted by the earnings bug. Stocks have risen in recent days after strong earnings results from some of the biggest U.S. corporations. Most S&P 500 companies that have reported earnings have beat analysts' expectations. Corporate profits are expected to jump around 35% in the latest quarter from the prior year, according to Refinitiv data. Financial results from value stocks have shown that corporate executives have been able to 'insulate' themselves from the global supply-chain crisis...and deliver strong results. [Read more...]( [Down over 25%, These 3 Renewable Energy Stocks Are Too Cheap to Ignore]( Many of the biggest renewable energy stocks on the market have pulled back sharply since hitting highs earlier this year. That's partly because investors had become too exuberant in trading and partly because higher interest rates have hurt growth stocks. Despite the pullback, renewable energy is a booming industry and there's a lot of opportunity for investors. Three of our renewable energy contributors think SunPower (NASDAQ:SPWR), Atlantica Sustainable Infrastructure (NASDAQ:AY), and TPI Composites (NASDAQ:TPIC) are great deals, with the stocks down over 25% from their 52-week highs. [Article continues...]( [Expensive Purchases That Are Worth It - 10 Times To Choose Quality Over Quantity]( For some things, such as brand name clothing, it doesn't make sense to spend a lot of money. For example, buying a Gucci belt over a $40 leather belt is simply not worth the added cost. I mean, it's ten times the cost. It just doesn't add enough value. If you buy a Gucci belt over a more affordable belt, you are basically telling everyone that you are stupid enough to pay an obscene price for a brand name. Furthermore, you desperately want everyone to think you are rich, which is exactly the kind of attitude that will keep you poor. In the words of Morgan Housel, wealth is what you don't see. "When you meet someone who owns a $100,000 car, you only know one thing about their wealth: That they have $100,000 less in the bank, or $100,000 more in debt, than they did before they bought the car. That's the only information you have." - Morgan Housel. However, it's important to note that some expensive purchases are worth the extra cost because they add value to the buyer's life. In these cases, choosing quality over quantity is actually the smarter financial decision, because expensive purchases will save you money because they last longer. In this article, I will look at 10 expensive purchases that are worth it. Let's dive in. [Click to continue reading this article...]( [Boost Your Retirement Savings for 2022]( You have until December 31 to stash the maximum $19,500-or up to $26,000 if you're 50 or older by the end of the year-in a 401(k) and until April 15, 2022, to contribute the maximum $6,000 (or $7,000 if you're 50 or older) for 2021 to your IRA. Contributions to 401(k) accounts aren't included in your taxable income. If you're not eligible for a workplace retirement plan, or your income falls below specific thresholds, you can deduct contributions to a traditional IRA. In both cases, your contributions will lower your 2021 tax bill. If you were self-employed or had a side hustle in 2021, you can save even more in a tax-advantaged account. As both employee and employer, for 2021, you can contribute up to $58,000 ($64,500 if you're 50 or older) to a solo 401(k) plan, which is available to anyone with self-employment or freelance income. Your contributions can't exceed your self-employment income for the year. You have until December 31 to make the employee share of your contribution and until April 15, 2022, to contribute as an employer. Alternatively, you could contribute to a SEP IRA, which allows individuals to put away up to 20% of net self-employment earnings, with a $58,000 maximum. The deadline to both establish and fund a SEP IRA for the 2021 tax year is April 15, 2022. [More here...]( SPONSORED CONTENT ["I'm Making Over $20,000 A Month Trading A $120,000 Account."]( Why reinvent the wheel as a trader if there's a strategy that works? 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