Stock markets are at all time high and a lot of investors may be thinking of what to do with the profits they have made on stocks. If you are one of them, these are the things you can do:
1. Sell part of your holdings and book profits: This will help you to re-enter the stock if it falls again or you can get into another stock.
2. Sell all stocks and buy calls: Some investors do not want to sell their stock holdings thinking that it may go up even further. For them it is suggested to do the “Stock Replacement Strategy”. In this strategy, stock profits are taken and replaced by derivatives.