Welcome to your guide on long-term options for strategic portfolio management

Welcome to your guide on long-term options for strategic portfolio management

Options 10 minutes to read
Koen Hoorelbeke

Investment and Options Strategist

Introduction


Welcome to our specialized resource designed to help you strategically manage profits and reduce reliance on single (or few) positions within your portfolio using long-term options. This guide is crafted to assist you in understanding and applying long-term options to diversify investments and secure gains while maintaining market exposure.

What you will find here


This resource is ideal for investors who have realized significant gains from their holdings or are experiencing large swings in portfolio value. Here, you will find tailored information and step-by-step guides to help you smartly leverage long-term options:

Case studies
Sarah’s strategy with long-term options   Explore how Sarah uses long-term options to lock in profits from a major stock holding while freeing up capital for other investments.
Alex’s method for portfolio diversification with long-term options   Learn how Alex employs long-term options to reduce dependency on a single profitable stock while maintaining upside potential.
Educational resources
Understanding long-term options   A comprehensive guide that explains what long-term options are, how they work, and how they can be used to manage financial risks and opportunities.
How to buy and manage long-term options on the Saxo platform Detailed instructions to effectively purchase and oversee long-term options, enhancing your investment strategy on the Saxo platform.
Further learning
If you're looking to deepen your understanding of options trading or wish to start from the basics, our Zero-to-Hero Educational Series provides a solid foundation in trading principles and advanced strategies:
  • From zero to hero - buying options  This article provides an introduction to options trading, covering the basics of buying and selling options, how to make money with them, and the risks involved.
  • From zero to hero - selling options  This article specifically provides an introduction to selling options, often called premium selling and how to make money with them, as well as the associated risks involved.
  • From zero to hero - option strategies  The article outlines how to manage risks and enhance potential rewards by using defined risk strategies like vertical spreads and undefined risk strategies such as strangles. It offers insight into choosing between debit and credit spreads and explains the terms commonly used in options trading. The piece serves as a guide for investors and traders seeking to better understand and utilize options strategies in their portfolio management.
  • From zero to hero - options lexicon  This article serves as an essential guide to options trading terminology, providing a comprehensive list of keywords for anyone engaged in options trading.
Related to long-term options are of course "normal" calls ... hear everything about that in episode 3 of our podcast series "Saxo Options Talk" by Koen Hoorelbeke and Peter Siks:
  • Options Talk - Episode 03 - Long Calls  Buying call options may seem straightforward, but there's more to it than initially meets the eye. In this episode, Koen and Peter break down why traders opt for long calls and how this approach significantly differs from traditional stock investing.
Why consider long-term options?
Long-term options can be a prudent addition to your investment approach if you're looking to:
  • Secure gains and reduce exposure from positions with significant profits.
  • Diversify your investment portfolio without completely divesting valuable holdings.
  • Maintain flexibility in your market exposure with a reduced capital commitment.

    Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website.

    Quarterly Outlook

    01 /

    • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

      Quarterly Outlook

      Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

      Althea Spinozzi

      Head of Fixed Income Strategy

    • Equity Outlook: Will lower rates lift all boats in equities?

      Quarterly Outlook

      Equity Outlook: Will lower rates lift all boats in equities?

      Peter Garnry

      Chief Investment Strategist

      After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto...
    • FX Outlook: USD in limbo amid political and policy jitters

      Quarterly Outlook

      FX Outlook: USD in limbo amid political and policy jitters

      Charu Chanana

      Chief Investment Strategist

      As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ...
    • Macro Outlook: The US rate cut cycle has begun

      Quarterly Outlook

      Macro Outlook: The US rate cut cycle has begun

      Peter Garnry

      Chief Investment Strategist

      The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c...
    • Commodity Outlook: Gold and silver continue to shine bright

      Quarterly Outlook

      Commodity Outlook: Gold and silver continue to shine bright

      Ole Hansen

      Head of Commodity Strategy

    • FX: Risk-on currencies to surge against havens

      Quarterly Outlook

      FX: Risk-on currencies to surge against havens

      Charu Chanana

      Chief Investment Strategist

      Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo...
    • Equities: Are we blowing bubbles again

      Quarterly Outlook

      Equities: Are we blowing bubbles again

      Peter Garnry

      Chief Investment Strategist

      Explore key trends and opportunities in European equities and electrification theme as market dynami...
    • Macro: Sandcastle economics

      Quarterly Outlook

      Macro: Sandcastle economics

      Peter Garnry

      Chief Investment Strategist

      Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p...
    • Bonds: What to do until inflation stabilises

      Quarterly Outlook

      Bonds: What to do until inflation stabilises

      Althea Spinozzi

      Head of Fixed Income Strategy

      Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ...
    • Commodities: Energy and grains in focus as metals pause

      Quarterly Outlook

      Commodities: Energy and grains in focus as metals pause

      Ole Hansen

      Head of Commodity Strategy

      Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...
    Disclaimer

    Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

    The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

    Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

    To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

    None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

    Please read our disclaimers:
    - Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
    - Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
    - Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

    Saxo Capital Markets (Australia) Limited
    Suite 1, Level 14, 9 Castlereagh St
    Sydney NSW 2000
    Australia

    Contact Saxo

    Select region

    Australia
    Australia

    The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

    Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

    Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

    Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

    The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

    Please click here to view our full disclaimer.