By Timothy Kelheart Disclaimer: Invest at your own risk and after you have conducted your own due diligence on stocks mentioned in this article. January, a new beginning in the world of business and the stock market; Usually a time of uncertainty as 4th quarter earnings from the following year w...

Disclaimer: Invest at your own risk and after you have conducted your own due diligence on stocks mentioned in this article.

January, a new beginning in the world of business and the stock market; Usually a time of uncertainty as 4th quarter earnings from the following year won’t be released till the very end of the month and sometimes not until the beginning of February. This release date varies from company to company as they all are not on the same fiscal calendar but most of the big stocks are grouped together.

 
The day traders are just warming back up after the holiday recess and closing of the stock market with all looking to make a big splash in the new year. With the start of a new year it is the perfect time to talk about put options or the betting that any given stock will increase or decrease in a set period of time. The advantage of put options if wagered correctly can result in great gains if you have done your homework and have a good feeling about a stock price’s movement. A put option states that you are willing to buy or sell a certain stock for a given price on a specific date. If you believe that a stock is going to hit rock bottom it would be wise to put a put option to sell your stock for roughly the price it is valued at or more than the current asking price for it if those who would be purchasing the put option believe that the stock will raise in price, allowing them to believe that they are getting a deal on the future value of the stock. And the same can be said about the reverse in buying put options.

But be very weary on put options and those who offer them in the market and watch out for the whales they will sink your financial boat.