The following article has been featured on MarketWatch.com.
Options have many uses, but are primarily used as a hedge by a number of investors and traders to take some uncertainty out of the market. This is well-known to professional traders, but less so for the novice option trader or, even worse, the investor who doesn't use options because he considers them to be strictly a speculative vehicle.
In this article, we're going to discuss one kind of uncertainty: that of "risky" vs. "risk-averse" asset classes; the apparent dichotomy created in the economic outlook by bullish corporate earnings versus the broad economic backdrop of an economy that just can't seem to improve.
To continue reading the story, visit: http://www.marketwatch.com/story/its-time-to-protect-stock-portfolios-now-2010-07-01