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Re: fourkids_9pets post# 1715

Tuesday, 07/19/2011 12:03:31 PM

Tuesday, July 19, 2011 12:03:31 PM

Post# of 2688
Fourkid, you are obviously not experienced in how one breaks a hedged trade where a call option is used as upside protection to protect a short position. Go read up on it and I'll explain in plain English how it works and how your Max loss is only the cost of the option which one typically sets at a small percentage not unlike a stop loss or OCO bracketed trade.

And I am a trader. Many moons ago at Dreyfus at the bond desk.
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y