For some, market volatility could mean sitting on the sidelines, watching and waiting for a consistent increase. For others, it could mean getting their feet wet with dividend stocks, bonds or even options.

So, we had to ask the “collective brain” of traders in the Options Investing Strategies Community about their experience of buying or selling during volatile markets. The question posed: “When was the last time you invested in options and how has your portfolio been impacted by this type of strategy?” About 20 people chimed in, here are some highlights:

• “Depending on one’s view of the market and if one is of the trader mindset, the collar strategy (short upside call/long downside put), may be a consideration to protect one’s portfolio.”
• “I have tried some LEAPS [long-term equity anticipation securities] strategies but tracking results gets complicated.”
• “Almost all the trades I do have limited risk and a capped upside with ‘theoretical edge’ in my favor. It’s the only way one can trade decent size prudently with their own capital.”
• “I am always amazed by the people who can make money on short-term option trades with fairly wide bid/ask spreads. It may be that I am stuck with wider spreads because of the limited volume of LEAPS traded. It has sometimes taken two to three weeks to get an order filled, but I usually offer midway between the bid/ask spread plus a tenth or two.”
• “I highly recommend complex due diligence on the underlying companies of options and then simplifying the trades as much as possible. The reverse is very dangerous and expensive and more or less dependent on luck.”

And the comments go on and on! You could tell there was a wealth of knowledge being exchanged and members were truly learning from one another. This is just one example of how the AAII Community connects individual investors as they work toward engaging in different investment styles and strategies.

If you’re interested in joining a community of individuals passionate about navigating the world of options investing, log in to the Community at https://community.aaii.com with your AAII member credentials and join the Options Investing Strategies Community today.