Understanding investing in options, how to deal with risks with put and call options

Question

1.    Suppose you own the following stocks in your portfolio at equal weights:

AMZN (Amazon)

JPM (JPMorgan)

PFE (Pfizer)

BA (Boeing)

DIS (Disney)

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

Answer 1