Understanding investing in options, how to deal with risks with put and call options
1. Suppose you own the following stocks in your portfolio at equal weights:
a) Assuming you want to protect only TWO of them for dropping 20% in price from today's close over the next 3 months - September 2020
b) Also assume you also want to double up your exposure to ONE of them if its price drops by at least 15% from its current level.
Show the hedging strategies (Puts or Calls) you are willing to buy in order to accomplish (a) and (b). Name the companies and select the Puts/Calls with respect to Expiration Date, Strike, Implied Volatility, $-Cost
I am learning to navigate Yahoo Finance options page, but how do we learn how to invest in the right options. Learning with real companies is much more useful than reading hypotheticals