I have been concerned about the economy for a while now but the growing volatility I’ve seen in the market the past few months coupled with the new administration policies lead me to believe that now is a good time to shift to different options strategies.
I’ve written about my ladder covered call strategy here where I cover being long and short simultaneously for cash flow generation but with the collar strategy, it’s more about a fixed return with capital preservation.
Rather than write a long post about the collar strategy, you can simply watch this great video on the topic.
ETF Options
If trading options isn’t your thing, there are ETFs that mimic this strategy and I’ve written about and own one named CPSM. It’s been almost a year since I bought that ETF and I look forward to seeing if the 9% return guarantee pans out as expected. I will write a post on that ETF after May 1 of this year.
Share The Wealth
What strategies are you using to risk manage your portfolio in today’s volatile world? Let me know in the comments below.