101Option Trading Secrets Section 9 potx

Section 9 Trading Resources [...]... Secret 94 THE MAGIC PYRAMID Every investor should have a grand master plan In other words, an asset allocation plan, a plan that shows how you will invest your liquid assets The question is how should options... cash holdings and use option strategies to provide the opportunity for growth to your portfolio One level above your cash position would be your bond holdings Here, only include high rated short term and TRADING TIPS intermediate bonds, especially if rates are low To cover some of the currency risk, an international bond fund may be wise Swiss bonds are a good alternative here About 5% to 10% of your portfolio... generate more income for your portfolio Buying cheap puts can provide a downside cushion of insurance and protection for your stock portfolio Buying Leaps® and Leaps® spreads (to be covered in the next section) can be used as a surrogate for stocks to reduce the downsize risk and increase potential rewards Altogether, options can maximize the gains and minimize the risks for your stock portfolio The . Section 9 Trading Resources