If you already own a long-term equity portfolio, would you use options on top of it?
I’m curious how people here approach this.
Say you already have a reasonably large portfolio of stocks / equity funds that you intend to hold for years.
Would you keep that completely separate from options?
Or would you use part of those holdings as collateral and run defined-risk option strategies alongside the portfolio?
I’ve increasingly come to see these as two very different uses of options:
One is trading options as a standalone activity.
The other is using options as a layer around an existing portfolio — for hedging, managing risk or creating some additional cash flow.
Same instrument, but very different objective.
For those actually doing this: what has worked for you, and what have you learnt not to do?
u/FINFUTUREWISE — 11 days ago