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Re: Fossil-Fuel post# 977

Tuesday, 10/18/2011 1:13:49 AM

Tuesday, October 18, 2011 1:13:49 AM

Post# of 990
You would only use a "married put" if you are in fact buying the security and you want some downside protection. This does involving spending money on a long (put) option that might expire worthless, so you overall breakeven is higher, but your downside risk is protected. I wouldn't do this for one simple fact...I am not buying a stock that is not momentum driven and I feel has a huge upside potential based on Technical analysis. If I am also purchasing a "married put", already I have doubts in the momentum and thus I would think twice about entering the underlying in the first place.

Options is the way to go...I encourage you to learn more.



Always trade with the trend, be quick to take losses, and slow to take profits.

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