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janice shell

07/18/11 8:49 PM

#1725 RE: fourkids_9pets #1715

Moe was talking about *hedging*. A different yet related *concept*.
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moe_the_gyp01

07/19/11 12:03 PM

#1739 RE: fourkids_9pets #1715

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.