Kensington

Options Trading

Put, calls, straddles and more

Reflecting your ideas in contracts

Options are an extremely powerful and versatile tool that can be used to achieve a wide variety of investment strategies and goals. When buying an option, you can profit or lose from the fluctuation of the stock price without ever owning the actual stock. Purchasing options can allow greater profits (one contract typically leverages 100 shares of underlying stock) while at the same time minimizing risks. There is option risk associated with hedging a stock position or taking advantage of the movement of a particular stock. Option contracts provide you an opportunity to participate in the market with the lowest capital outlay, but the greatest potential for either profit or loss, depending on the options take.

Strategies

Individual options contracts can be combined to build custom strategies for almost any investment outlook, based on your degree of bullishness or bearishness, your personal risk tolerance, and your investment time frame.


These strategies are powerful, but often complex. The flexibility they offer can can complement your portfolio in many different ways. Our firm can help you understand and execute different options strategies. Take the time to identify a goal that suits you and your financial plan, and we will help you identify a strategy based on your goals.


Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Please read Characteristics and Risks of Standardized Options before investing in options. Supporting documentation available upon request by contacting our customer service department at