The Option Profit

Hedging is an opposing action taken against an investment to reduce the risk of adverse price movements. There may be a variety of ways to hedge an existing position within your portfolio, and perhaps your portfolio itself. The Option Profit encourages the use of hedging, to some degree, within all portfolios and against individual securities, especially concentrated positions, on a continual basis. Trade ideas provided to members of The Option Profit will frequently be accompanied with examples of hedging strategies. No investment is without risk which is why The Option Profit is constantly searching for positions which can be hedged in an effort to help offset inherent risk. Options along with Short Selling are examples of hedging strategies along with index or sector ETF’s which can be effective tools when utilized correctly.

Refer to Glossary for terms and definitions

Option Profit members can elect to have trade ideas sent to them via secure email notification and have unlimited access to the features of their respective memberships. All Option Profit Trade Ideas:

Are sent in a timely manner
Include strike prices and symbols
Have estimated returns assuming expiration of the trade

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RISK is inherent in any investment. No individual or entity should invest with funds they cannot afford to lose. Option trading is time sensitive and involves risk including, but not limited to, loss of gains and principal. A leveraged investor risks the loss of more than principal. Options do not have to be held until expiration and can be exercised at any point. Option trades can be closed prior to expiration with a gain or loss being realized. It is important that you understand all trades and the risk associated before executing a transaction. The Option Profit provides broad ideas, not individual recommendations, and is not responsible for any losses incurred. Diversification is important with any strategy and should be considered when investing Before trading consult with a financial advisor to determine if option trading is appropriate for you and your financial goals.