Have cash on the sidelines in your investment portfolio? You can hedge it with this option strategy.

Stock and bond investors have had a rough year. As a result, there is a historically large amount of cash sitting on the sidelines waiting to be put back into the financial markets. If you are holding cash with the intention of investing at better levels in the stock market, but don't want to miss out if a bull market emerges could consider a risk reversal strategy using e-Mini S&P 500 futures options in which traders sell put options and use the proceeds to buy call options. This provides some upside exposure with the ability to "go long" by taking delivery of the underlying futures contract at the strike price of the short put should the market correction persist to lower levels.