|
PureBytes Links
Trading Reference Links
|
HI Rtrs,
I heard of a trader who went long S&P 500 future and bought a put for
protection in beginning January, 1997. He kept on rolling over closing out
his position in beginning October. According to the broker friend whose
client he was, he made a decent amount of money without much stress.
So the use of option for protection for position trading represents a valid
use of option because of less stress, less margin and improved ability to
hold a position long term. The use of option for protection for short-term
future trading (3 to 5 days) doesn't seem promising because of commissions
and premium . Comments are welcome.
Happy Trading,
Asif.
|