I love stock options because they give us the power to hedge.

You already know about the income side of selling options.

But when the market gets murky (you saw my email 2 weeks ago?) and you want to dial back your exposure, a little insurance on your portfolio helps you actually sleep at night.

I can't be the only one who wakes up at 2 AM running worst-case scenarios. Not just the stock market... Real estate.. Family... Career...Life in general...

The cool thing about the market? You can actually get paid to reduce your exposure if you have a system and a plan. I have both, but you probably already knew that especially if you are in the Inner Circle​

Last week I was hanging out at the liquor store... Bourbon anyone (inside joke from last week)

With a room full of options traders. (Because where else would options traders hang out?)

During the presentation, the speaker walked through how to use options collar a 100 shares of stock. It reminded me how confusing collars sound when nobody explains the why. The trade on the screen was built to cut his risk, but the setup, the actual why... That part never got said out loud.

So I recorded a YouTube video this week showing you 3 ways I hedge any position where I own at least 100 shares:

1. Covered calls
2. Collars
3. Super collars

​

I show you how to buy a put debit spread (your insurance policy) and use a covered call to pay for most or all of it.

Most people holding 100 shares of a great company just ride the roller coaster with their fingers crossed. When the market drops, their stomach drops with it. They take on 100% of the downside risk with zero plan.

You don't have to play that game.

When you understand how it works, the market can pick up the tab for your protection. You cut your delta and lower your downside exposure. The tradeoff is simple: if the stock rips past your call, your gains stop there. I'll take that deal on a lot of my positions.

I don't know of any other asset where you can get paid to insure what you own. Yet people tell me all the time that options are just too risky.

Don't be that person.

Using math to define your risk isn't reckless. To me, the reckless move is refusing to learn how it works.

Watch the video here: Hedging your stock portfolio shouldn't cost you money!​

Take a look at your portfolio this weekend. If you're holding shares with no protection, ask yourself why you're carrying all that risk when the tools to protect yourself are right in front of you.

​Mr Money Maxwell isn't just about selling options for income. It's about locking in gains, protecting what you've built, and sleeping a little better at night. If you aren't in the inner circle you should be!

Turning knowledge into wealth,

$Maxwell

If you are ready to take your trading to the next level come see us in the Good Kids Trading Discord. Invest in your future by joining me in the Inner Circle for Weekly Option Newsletter and Monday's Weekly Income Newsletter.

All the information I provide is education, not financial advice, you make your own decision and click your own buttons!

📖 This week's Trade Tuesday blog:

​Is this stock on sale... or am I about to overpay​

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