Sophisticated investors may use options to provide additional exposure to investments or to protect existing investments against potential market moves.
What are options?
An option is a financial contract between two parties regarding the right to buy or sell shares of a security at a specified price on or before a specific date. The investor buys the "right" to purchase the security, while the seller has the "obligation" to fulfill the purchase if requested by the buyer.
Options are complex securities used as a way to manage portfolio risk, and are traded on the major exchanges.*
*Options trading entails significant risk and is not appropriate for all investors. Prior to trading options, you must receive a copy of "Characteristics and Risks of Standardized Options," which is available from your Investment Professional, and be approved for options trading.
Fifth Third Securities is the trade name used by Fifth Third Securities, Inc., member FINRA/SIPC, a wholly owned subsidiary of Fifth Third Bank, a registered broker-dealer, and a registered investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Securities and investments offered through Fifth Third Securities, Inc. and insurance products:
|Are Not FDIC Insured||Offer No Bank Guarantee||May Lose Value|
|Are Not Insured by any Federal Government Agency||Are Not A Deposit|
Insurance products made available through Fifth Third Insurance Agency, Inc.
Investments, variable annuities and brokerage accounts are offered through Fifth Third Securities, a wholly owned subsidiary of Fifth Third Bank. Fixed annuities are offered through Fifth Third Insurance Agency Inc., a wholly-owned subsidiary of Fifth Third Bank.