Dale Jackson: Options could be the right option for your portfolio

Options and other derivatives can be the right option for older Canadians to generate safe income.

That’s where options can help lock in the savings you worked so hard to accumulate. Options and other derivatives can be the right option for older Canadians to generate safe income.

Derivatives get their value, risk and basic term structure from an underlying asset, normally a stock. Options give investors the right, but not the obligation, to buy or sell an underlying asset. 

It’s a lot for the average investor to wrap their head around.