Financial Derivatives: Understanding Calls and Puts

Patrick Cassidy, CFA, CTFA |
Investment Management

Learn about the pros and cons of using options as part of your investment strategy.Options offer an opportunity to take advantage of market moves, both up and down.They also offer the possibility of increased rates of return and a predetermined limit to the amount of potential loss.While options are sometimes used to hedge or reduce risk, they can be an aggressive investment and may not be appropriate for every individual.