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Re: CortesInvestments post# 18161

Saturday, 01/11/2014 2:13:48 PM

Saturday, January 11, 2014 2:13:48 PM

Post# of 26046
Yes you need level 3 or higher... Involves selling a put of one strike and buying a put of another... Same for calls... You hope the expensive put/call expires worthless while the less expensive strike is a hedge against infinite losses (calls can incur infinite losses) (selling puts losses is limited to the underlying equity price)

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