Diversify Your Portfolio By Selling Options

We hear a lot about how important portfolio diversification and asset allocation are to our investments. The financial planners tell us how diversification is the best way to invest. We should “Never put all our eggs in one basket,” they tell us.

Makes sense. If all our money was in one stock and the company went out of business, we would lose everything. Just ask the people who worked at Enron.

Search online and you will find millions of articles about how to diversify. Gold bugs will tell you to buy gold stocks and gold bullion. Conservative financial planners will tell you to buy bonds. Stock brokers will tell you to put your money into stocks but in different industries. Others will tell you to buy commodities [...]