The words “derivative” and “stock option” have become synonymous with “high risk” in the public mind. This is an unfounded belief. Worse still, it is an unfortunate situation because the truth is that stock options can significantly reduce risk...
This article was printed in Alan Hull’s weekly newsletter ‘ActVest’ for Active Investors in March 2005 (available from www.alanhull.com) and is reprinted here with Alan’s permission....