News Article | June 22, 2017 |
Barron’s (June 22, 2017): Is it time to break out the puts and stop-loss orders for your clients?
Market professionals say the calm but expensive market presents an opportunity for investors buy options inexpensively, reports The Wall Street Journal.
Stop-loss orders are also meant to limit an investor’s downside on a specific holding. Made with a broker, such orders trigger the sale of an investment if its price falls by a specified level.
Because stop-loss orders execute automatically once set, they can take the emotion out of selling a holding, says Terri Spath, chief investment officer at Santa Monica, Calif.-based Sierra Investment Management.