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4 Cards in this Set
- Front
- Back
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Hedging
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PROTECTING an existing position buy taking a position on the opposite side of the market
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Long puts protect:
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long stock positions
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Long calls protect:
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short stock positions
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Important point about hedging and options
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Inv generally DO NOT SELL options to HEDGE bc sellers sit in the passenger seat and do not control the exercising of the option
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