Alternative To Closing Positions In Stocks Due To Potential Losses.
From Greg M
Lions…
IF you are considering closing a stock holding/ETF/position due to a potential drop in the stock market, you have another option.
PROTECTIVE PUTS.
This is a hedging strategy, and here is how it works. A protective put is a risk-management strategy using options. A protective put seeks to keep potential downside losses (on a long position) limited.
A protective put position is created buying put options on a share-for-share basis. For example… Say you own 100 shares of stock XYZ, you would purchase one put option.
The following link will detail for you exactly how to set up a protective put(s).
Click HERE.
GM
Thanks for this information Mr Gregory Mannarino. I would really like to learn how to do procedures like this. The only thing I have been doing all my life is buying stocks and commodities for cash. No borrowed money.
That was way cool Mannarino. 😎