By Luke Downey
It’s election season. That’s usually a very volatile period for the stock market.
I discussed how the markets react during election season last week… And I fully expect this year to be no different. In sum, expect some choppiness.
While volatility can be unsettling for many investors, there’s a way to limit your downside exposure to the market or a particular stock… while betting on the upside. It’s called a call option.
Option trading gets a bad rap. Many investors believe it to be too risky… But as you’ll see, that isn’t true. Options simply give an investor options!
If you’ve never bought (or sold) an option before, a call option contract is the easiest to understand, and it’s a great starting point.
Today, we’ll cover the basics of buying calls, along with an example that illustrates just how much money you can make from this strategy… in a short amount of time.
