Although buying put options to hedge against a stock market disaster is almost never a good idea, there are other ways to protect one’s portfolio that risk only small change. One tactic is to “butterfly” combinations of put or call options that are far-out-of-the-money. In this 40-minute impromptu tutorial, Rick demonstrates some of the ways this can be done right now to guard against the possibility that the current correction in gold and silver will turn into something prolonged and nasty.
