By incorporating options into your asset base, you gain the flexibility not only to hedge against painful losses but also to outperform the market during periods of dramatic change—in both directions. Whether using puts to profit from downturns or calls to capture upside momentum, options are a smart complement to any traditional equity portfolio. Investors will sleep better at night when they can sidestep drawdowns and accelerate market gains.
Options are no longer just for the uber-wealthy or high-risk speculators—they’re now accessible, practical tools for a wide range of investors. With the right strategy, options can be tailored to fit your unique risk tolerance and financial goals. More conservative investors might maintain a portfolio that’s 90% equities and 10% options, using options for downside protection and modest gains—while actually reducing overall volatility. More aggressive investors may pursue a 50/50 blend of equities and options, accepting greater monthly swings in exchange for the possibility of outsized returns. At Stellar Assets, we’ll work closely with you to determine the optimal mix, crafting a personalized strategy that aligns with your objectives and comfort with risk.
When it comes to options strategy, our approach is unique. First, we never place outright bets on market direction. We’re realistic and humble enough to admit we don’t know where the market is heading next. That’s why we always maintain a balanced mix of both put and call options, so we’re ready for movement in either direction.
Second, we don’t trade broad market indices. Our options strategies are built around individual stocks—companies we’ve researched thoroughly, modeled rigorously, and formed a reasoned opinion on.
And finally, we believe in taking profits early and often. Markets are dynamic, and stocks frequently move in both directions before expiration. Instead of always swinging for home runs, we’re comfortable taking some chips off the table as we round each base. Because in this game, pigs get slaughtered—but disciplined investors thrive.