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Re: [RT] Hedging with Options



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Hello
this was done with dec 1175 puts not calls
When you are long you hedge is puts
When you are short your hedge is calls
the distance between your future buy stop and your put strike price is your 
max loss potential in the overnight stay
Ben
----- Original Message ----- 
From: "ketayun" <ketayun@xxxxxxxxxxxxx>
To: "Realtraders@xxxxxxxxxxxx Com" <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, October 30, 2005 6:49 PM
Subject: [RT] Hedging with Options


> Hi Ben,
>
> During your last post you mentioned that you hedged your long position 
> with
> Dec Calls. Did you use Dec instead of November because the time decay on 
> an
> overnight or swing trade is less or was that a typo?
>
> Thanks very much for detailing how you placed the trade.
>
> Sincerely,
>
> Kate
>
>
>
>
> Yahoo! Groups Links
>
>
>
>
>


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