Essential Purchases and Smart Investment Moves for a Coronavirus-Ready Life

As the world continues to navigate the challenges posed by the coronavirus pandemic, it is crucial to prepare for potential disruptions while maintaining smart financial practices. This article focuses on essential purchases and investment strategies that can help you stay prepared and financially secure during uncertain times.

Essential Purchases for Pandemic Preparedness

First and foremost, in first-world countries, it is essential to have a sufficient supply of N95 masks. These masks are particularly effective in filtering out respiratory droplets, offering protection against various pathogens, including the virus. In addition to masks, it is a good idea to stock up on two weeks' worth of essential food supplies. This will help you stay at home and avoid unnecessary risks while ensuring your basic needs are met during prolonged periods of restricted movement.

While it is important to follow cautious behaviors such as maintaining social distance (at least 6 feet) in crowded areas, it is equally vital to steer clear of misleading information. Organizations like FOX News, known for broadcasting intentional misinformation, should be avoided. Their broadcasts have not only undermined public health efforts but have also faced legal repercussions, admitting to openly lying under oath.

Smart Investment Strategies

Selling puts, a form of option trading, can be a more cautious and potentially rewarding investment strategy in volatile market conditions. Unlike buying stocks directly, selling puts allows you to earn premiums without the immediate risk of loss when the stock price declines significantly.

For instance, consider Reliance stock, which traded at 1100 before the pandemic. Now, at 1060, selling a 960 put option could earn you a premium of around 21,875 per contract. If the stock does not reach this level, you keep the premium, which can be your profit. If the stock price dips to 916.25, you can buy the stock at a lower price, effectively investing in the market at a favorable cost.

Why Selling Puts is a Better Approach

The key advantage of selling puts is the limited risk. Unlike buying stock, which can lose all its value, selling puts gives you a guaranteed minimum income (the premium) plus the opportunity to buy the stock at a lower price if you choose to do so. This strategy allows you to maintain a degree of control over your investments while mitigating potential losses.

Conclusion

Preparing for the coronavirus pandemic involves making wise purchases and adopting strategic investment decisions. Having sufficient supplies and being aware of misleading information are crucial first steps. For a more cautious approach, consider selling puts, a method that can generate income and allow you to invest in stocks at more favorable prices.