# 1 Inflation Protecting Move


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I have been saying inflation is coming and that is what governments want. Well…it’s here.

Here is what investors must do…

HEDGE.

I am still long my favorite companies and ETFs but I am mitigating risk to the downside using options.

I believe it’s an absolute must. We have more problems in this country then just intense inflation. Everyone knows it and is uneasy about the rising cost of living and the debt burden our government has gotten us in. In other words, there is a TON of risk out there.

Wise investors mitigate risk.

Here is one example of a hedge using options…

Mastercard, Paypal, and Facebook have dipped considerably. I like to take advantage of dominant companies when they dip in share price.

Here is a chart of the Mastercard dip…

I could go ahead and buy 100 shares of MA on the dip for 34,300 (I bought the call option on 11/5/21 and share price of MA was about $343 per share) OR I could buy a call option instead. The red “x” represents when I bought the call option.

Here is the value of the option I bought on 11/5/21 as of market close 11/12/21…

I bought the option for about $4100 and it is now worth $5695. I chose a strike price a little in-the-money in order to decrease the cost of time-value. I chose about a 5 month contract.

My call option gives me the right (but not the obligation…I can always just sell the call option) to buy 100 shares (one option contract represent 100 shares of underlying stock) of Mastercard at 315 dollar per share up until 3/18/2022.


***If you don’t follow all of that it’s ok. I will be writing all about options in future articles. These tools are incredibly powerful and I believe every investor should learn how to use them. If you want to expedite the learning process then scroll down and take advantage of the special offer***


Now….Why did I do this???

Well… we are in crazy times and inflation may cause a fast correction or perhaps a crash. If I would have outright bought 100 shares of MA for $34,300, and then we experienced a crash or correction, then MA’s share price could easily draw down 30 percent OR MORE.

This would mean Mastercard’s share price could perhaps go down to 241 per share and I would be down a little over $10,000. However, because I own the call option, my loss is capped at what I bough the option for.

Think about how powerful that is!! What this means is Mastercard could go to zero (won’t happen I know) and I would only lose the cost of the call option ($4140).

My downside is capped but my upside is unlimited.

This is just one example of a trade I like in order to mitigate risk. I will not go into the details of when I will sell this option or what I will do if MA starts to errode further in share price. I have a plan for every scenario before I enter a trade. It’s really quite simple the strategies I implement.

I have many more strategies I use with these amazing tools. My “Options Made Incredibly Easy” audio course consist of 40 chapters with many screenshots. Once you learn how to use options you will wonder how you ever invested without them.

My conclusion…

Inflation smation…I have options to protect me.

Thanks for reading and feel free to share this article.

Email brandon@streetwiseinvesting.com to ask any questions about my courses.


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Take advantage of this opportunity. You have nothing to lose and everything to gain. 

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I wish you the very best.

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