Since their inception, we've used hundreds of listed option products for risk management purposes. When institutional clients want to protect against large amounts of equity risk, there's no tool like options. They enable you to target return expectations by effectively managing downside risk. Plus, The CBOE has a complete line of other major index options. Tom Allen understands the utility of options.
Options are terrific risk management tools.
With them, you can engineer a return pattern that participates in the upside while controlling the downside risk, allowing you to target expectations. Take Aim at High Transaction Costs For major portfolio shifts you need to make quickly, options can actually lower transaction costs. To limit the up-front cost of the protective strategy, we can implement a 'collar' strategy with short call options and long put options. Plus, The CBOE offers the most complete line of major index options in the business, including for the first time ever, Options on the Dow sm . And with the recent outsized returns in the equity market, they're a good way to protect your clients from the outsized negative event.