| Today, many investors are looking for quick and | | | | investments option since it provides you higher |
| high yield safe investments tools. If you are | | | | returns than returns on stocks. Even a slight |
| looking for a high yield safe investment plan, then | | | | move in the stock can give you significant return |
| you can consider investing in convertible bonds or | | | | on your option. You can even double your |
| stock options: | | | | investment in a day by investing in stock option. |
| Convertible bonds, which are also called known as | | | | Stock movements are amplified with options. |
| CBs or convertibles, are bonds that the owner of | | | | If a stock moves by up to 10% your stock |
| the bond can convert into predetermined sum of | | | | option can move up drastically by up to hundreds |
| the company's equity at a given point in time | | | | of percentage point. This is because they are |
| during its life. Convertible bonds are very | | | | very highly leveraged and even a small move |
| attractive, safe and high yield safe investments | | | | would mean a big move for you. |
| option that you can consider due to the following | | | | With options you can reap benefits of all |
| reasons: | | | | market directions. While call options make money |
| Convertible bonds are one of the high yield | | | | when the value of stock increases, put options |
| safe investments option because it offers you | | | | makes money when the value of the stock |
| with interest payments on regular basis. | | | | decrease. It is this feature of the stock option |
| Downtrend in this investment category has | | | | that makes it a very attractive and high yield |
| not been as volatile as in other investment | | | | safe investment. |
| options, even in the recent economic meltdown. | | | | Another advantage of investing in stock |
| Another reason why CBs are a high yield | | | | option is that it can be bought and sold easily. This |
| safe investments tool for you is that, if the value | | | | allows you to quickly judge what the prospects of |
| of your underlying stock increases, you can | | | | the stock ahead are. Thus, you can decide before |
| convert your bond holdings into stock and play | | | | hand whether to buy the stock or not. |
| your part in the growth of the company. As the | | | | Stock option is a high yield investment tool |
| price of the stock increases, the price of the CB | | | | which is still a safe investment simply due to the |
| will follow up and climb as well, resulting in a high | | | | fact that since you have the leverage over the |
| yield return even if you sell the CB directly | | | | stock, that you do not have to risk all your |
| without converting it into stocks. | | | | money in stock, but place only a small portion of |
| The main benefit of CB over regular stocks | | | | it in stock options and keep the rest in a highly |
| is that you have a "floor" that protects you | | | | secure asset, such as TIPS or a very solid bond. |
| against sharp declines in the stock price. If the | | | | In this case, even if the market declines and the |
| value of your underlying stock declines, the | | | | stock options will be completely "out of the |
| minimum value of your investment will be same | | | | money", then you will still be able to reap the |
| as the value of high yield bond. The value of CB is | | | | interest from the solid investment for the major |
| derived from the value of the underlying stock. | | | | portion of the investment. |
| Thus, investing in CB is a high yield safe | | | | One important warning that comes with |
| investments option, since the risk involved here is | | | | stock options is that the safe investor must not |
| comparatively lesser than investing in common | | | | buy an excess dose of this tool as he will then |
| stocks. | | | | become a speculator and not an investor. Many |
| Investing in stock options is another high yield | | | | investors dealing with stock options become |
| safe investments option that you can consider as | | | | tempted with the high and quick gains that come |
| this option has many advantages, but carries also | | | | with this instrument, and tend to invest larger |
| a serious warning sign along it, which are listed | | | | sums of money in it, and when the market |
| below: | | | | fluctuates they see their investment simply |
| Investing in stock option is a high yield safe | | | | erased in a matter of days. |