Diversification is a very important topic of conversation when talking about any portfolio. In today’s Options Jive segment, Tom sheds some light on how diversification factors in to his options portfolio. Most people think of diversification purely in the sense of correlation between two underlying markets, which is very important but not the only way to find diversification in trading.
The dynamic duo take a shot at four different ways to diversify an options portfolio:
For greater clarification on correlation and diversification in an options trading account, check out the above video.
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