Tag Archives: put options
Hedging with Index Options
Posted on 07. Feb, 2010 by Global.
While the typical share investor might regard a stop loss order as the best way to protect their share portfolio against the downside, the informed investor knows the most effective way to protect their capital is by hedging, using Put Options. That’s certainly not to say “don’t use a stop loss”, in fact when trading [...]
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Option Trading Strategies: The Long Put
Posted on 19. Nov, 2009 by Global.
Option Trading Strategies such as the Long Put (buying Put Options) involve an investor buying a Put Option in order to profit from a downward move in the underlying share price. Therefore, their view on the underlying stock is Bearish. Before executing any bearish Option Trading Strategy, it is important you thoroughly understand the fundamentals about buying and [...]
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Option Trading Strategies: Protective Put
Posted on 11. Nov, 2009 by Global.
When an investor purchases a put option and they own shares in the underlying stock, they are said to be using a protective put. How Does a Protective Put Work? When you purchase a Put Option over shares you own, you are effectively insuring your shares against loss because you have the right to sell [...]
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Stock Market Crash: One Year Later
Posted on 21. Sep, 2009 by Global.
Was it really just a year ago when the sky fell in??? ….. so to speak anyway. The bulls have well and truly stamped their ground since July this year – we’ve seen investors here and in the U.S respond well to the latest reporting season and improving economic news. The US alone has recouped [...]
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It Ain’t Fundamentally So
Posted on 31. Aug, 2009 by Global.
I’ve noticed particular brokers and fund managers lately talking buy recommendations that seem to be moving away from the low to mid cap stocks and back into the big blue chip companies. When you think about it, it’s really not surprising that although our global economies are reportedly improving, there are still signs of uncertainty [...]
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Safety in the Markets
Posted on 02. Aug, 2009 by Global.
Anthony and I had an amusing conversation with a fellow BBQ’er yesterday while out at the beautiful Shelly Beach for the day. The gentleman in question was talking about how the global financial crisis had affected the price of oil and other commodities but providers have failed to bring down the price of petrol [...]
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