ziggy29
Moderator Emeritus
They associate "options" with "unacceptable risk." And for individual investors, they usually are. But used prudently -- and when you understand them -- there's nothing particularly "risky" about writing covered calls for income and buying protective puts for "insuring" your current equity position.Most fee-based planners in the Midwest where I am avoid options like the plague.
Yes, they have downsides if the market behaves in a certain way (and the covered calls limit your upside potential), but in both cases you have understandable and limited downside risk.