Using Options to Play Defense in a Scary Market

A variety of strategies are available to help investors rein in risk amid the current downturn

Forget everything you may have heard about options being too complicated for the average investor to understand or too risky. With the stock market delivering a virtual cascade of brutal sell-offs since mid-September, there are some fairly conservative ways to deploy options as a form of insurance, much like the policy you'd buy to cover, or at least limit, losses on a house that's in the path of a hurricane.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.