 After a year long decrease in prices, the market is finally ticking up again. What's pushing up the prices? The sign of inflation cool down. The US consumer price index increased by 0.4% in October, and that's the smallest gain since January this year. At the same time, producer prices cooled by more than forecast, up 0.2% from the earlier month. The market immediately rallied with net stake jumped more than 7% in one day, marking the best days in over 2 years. So you may be wondering, with inflation still ongoing, why is the market reacting positively? Well, that's because investors are anticipating the fat to start to slow down the interest rate hike, and in anticipation of the good news, the market jumped. But has the fat announced anything concrete yet to really slow down the interest rate hike? Not yet. Could they possibly continue the interest rate hike the same way that they have been doing? Possible. Possible. So don't be too happy yet, and end up finding yourself disappointed by the announcement later. The next course of action will only be announced on 13th to 14th of December. So from now to then, nothing can be said for sure. And in fact, if you observe the chart closely, right now we are approaching the resistant line. And it's possible that the market will turn back down again. And that is why in this uncertain period of time, if you have a big portfolio, it's actually wise to use options to hedge against the market volatility. If you want to learn how to protect your portfolio against the potential drop using options, then keep on watching. Chloe here and welcome back to my channel. The only one place for you to learn about options stops SOS investing. If it's the first time of you coming to my channel, remember to hit the subscribe button as I have the notification bell so that you will not miss out any of my future investment updates. An early thumbs up is also appreciated because it will tell you the algorithm that you find this video helpful and it will help to push out to more people to inspire them to start investing safely. Before that, I would like to give a special thanks to Moomoo SG for sponsoring this video. And if you want to get started in your investing journey and wondering which account to open, then do consider Moomoo because it's a very established brokerage that allows you to invest in diversified markets including US, Hong Kong, China, Singapore and more. Most importantly, it's also regulated by MAS, Monetary Authority of Singapore. Right now, if you open your account via my link below and find $2,700 Singapore dollars or more inside, you will even get free shares as a welcome gift as well as my own private portfolio watch list to help you to get started your investing journey. All you have to do is to fill out this google form and notify me once you sign up and funded your account and I will send you my portfolio watch list within a week. With that, let's get back to the video. In order to potentially protect your portfolio against the drop, you can consider buying put options. By doing so, you're locking the sale price of the stock. You may be wondering how does that work? Think about it as if you're buying a health insurance. The reason why we buy insurance is because in case we fall sick, we will be financially protected. And in the event that you really become very sick, touch your insurance company will pay you a huge sum of money to help you tie through the difficult period. The same thing can be applied to investing too. You can buy insurance for your portfolio. For example, if you have 100 shares of SPY and you're afraid that the market will fall sick and continue to drop further from here. That's why you decide to buy a put option insurance at strike price $340. And by doing so, you're locking the sale price of your 100 shares at $340. And just as expected, the market really came down from $300 over dollars dropped all the way to $222. While most investors outside are crying for the losses, your portfolio is being protected. Because right now, you can choose to sell away your 100 shares of SPY at the original $340. So instead of suffering the losses when the market comes down, your insurance actually kicks in to give you the financial boost that you need during a market downturn. How much is the insurance then? You can see based on the past trade, I paid about $1000 for the buy put option. And when the market came down during the COVID crash, my insurance can now help me claim more than $10,000. That's a whopping 940% gain in terms of protection when the market came down. But whatever happened was in the past. How can you protect your portfolio from now on? Because there's one thing that you need to remember clearly. You don't want to overpay for your insurance. If not, you will end up burning a big hole in your wallet. That's why right now, I'm going to log into the MooMoo platform to show you step by step how you can buy your put options at a reasonable price. Firstly, you can see that there are different option dates for you to choose from. For buying a put insurance, my advice will be buying from 4 months to about 6 months time. Because anything more than that, the insurance premium becomes more expensive. Step 2, choose the strike price that you want to lock in as the sell price of your stock. Generally, my advice will be choosing the strike price that is near to the current market price. So in this case, I will choose $393 and in case the market does drop more from here, I can still sell away my shares at $393. By doing so, you'll be paying a premium of $2,343 upfront. The next thing to do is to wait and be zen. There's no point there at the market every day hoping that the market will drop. After all, put insurance is for protection purposes not to make you a lot of money. It's the same concept as buying health insurance. After you bought the insurance, you do not wish to become super sick to claim a lot of insurance, right? But if the market does drop from here, that's when your insurance will actually kick in to give you the financial boost that you need to use it to buy more wonderful companies when the price are cheaper. As you can see, options is very powerful. It even allows you to hedge against the current market volatility by the way. Right now, Moomoo is even offering three months free in-depth options data to my followers. It also comes with one free option kit which includes one month free options commission, options learning courses, and options paper trading for you to get started. On top of that, you will enjoy US stock lifetime free commission. All you need to do is to open your account via my link below to get all these free option bonuses and a free share including Apple. If you want to learn more about options, you can also join us in our upcoming free 2-hour next level masterclass and we will share with you three different option strategies to profit in different market conditions. All you need to do is to click on the link around this video and register for your free spot. Thanks for watching this video and do remember to follow my Telegram channel to get more investment updates. In the meantime, check out some of my videos right here to continue your learning. With that, I will see you in the next video. Arigato!