Stocks are down again today as investors worry about higher interest rates. It’s a good time to review some ways to manage the volatility with options. Remember that calls fix the right to buy a stock and puts convey the right to sell. Investors can use both to guard against potential downside in the market. Hedging With Protective Puts Put options set the level where a stock or exchange-traded fund (ETF) can be sold. They typically gain value when prices decline. They also can benefit from increased volatility thanks to Vega. Investors with broad exposure to the S&P 500 may want to consider owning puts on the SPDR ... (full story)