"Being prepared is a real option" by: John Sample

   Another week and despite worldwide malware in the guise of ransom ware, the equities indexes climbed to yet higher levels.
   Too say I am amazed would be quite the understatement. I understand equities markets climbing a wall of worry, but this is truly remarkable.
   You take the daily news coming out of the White House and all the events worldwide and you would tend to believe that this whole market is a complete fantasy.
   It should be noted that some traders use this type of market to make money hedging their positions.
   Hedging is just another name for insurance. It costs you something, but it is there in case something bad happens.
   One of the ways to hedge in an equities market is to write what they term covered calls.
   In essence, you are selling a contract to another investor that represents 100 shares of stock that you own.

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