…investors should continue (or begin) to focus on buying options.

Calling All Investors

If you’ve been investing for a while or you work for a company that offers employees options for its stocks, you may be familiar with call options.

They’re relatively easy to understand as they work in tandem with the values of stocks—if a call option’s underlying stock price increases, it’s likely that the price of the call will rise, as well.

For a lot of investors, purchasing call options is as a “defensive” way to buy stocks, and investing defensively is increasingly important during volatile markets. The price of a call option is often just a fraction of the stock price, so you risk less money from the start. To see just what I mean, check out: “Explosive Profits from Volatile Stocks.”

Consider Google (GOOG) at its current $530 levels. To buy 100 shares of GOOG, you’d have to shell out $53,000.

To buy an options contract to control the same number of GOOG stocks at the current $530 levels, you’d pay only $4,000 (or $40 per contract). With that savings, you might even be able to fill up your gas tank this summer!

And best of all, if the stock price climbs, you get to enjoy the gains, like the 111% and 113% wins we just booked in Fast Options Profits.

Put ‘Er There

However, a lot investors aren’t as familiar with the call option’s opposite, a put option.

For this reason, many people hesitate to use put options to their full advantage, which can be a costly mistake.

Put options are simple—all you need to know is that a put option profits when stocks fall.

As most of us know all too well, that has happened a tremendous amount in the past several months, but you no longer have to be scared of bear markets…