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Re: [RT] Hedging with Options



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look
When you consider the risk reward  on a position trade you must pay the 
consequences
(I step up to the plate and buy at mkt)
lucky for me mkt open up  Fri. morning making my put purchase  a few hundred 
dollars cheaper,
but, THIS is the price you pay for being able to sleep good at night  with 4 
long big contracts
some terrorist attack or any problem could happen, and  the open next day is 
: gap down 25 points,
with this protection, you know what your max   DD is in ADVANCE,
and
the beauty of this trade is that you can make that dd   as small or as big 
as you want,
so
if your stomach can not handle more than $1000  dd,
you could buy the dec  1180 puts
hope this explains it
Ben
----- Original Message ----- 
From: "Dominick" <Dom2000@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Monday, October 31, 2005 7:09 AM
Subject: Re: [RT] Hedging with Options


> Ben:
>
> I guess you're buying options with a Delta close to one, but the spreads
> are $0.75 or more.  I daytraded stock options at times
> with a spread as high as $0.15.   How are you overcoming the excessive
> spreads of options on futures?
>
> TIA,
>
> dom
>
>
>
>
>
>
> Yahoo! Groups Links
>
>
>
>
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>
>
>
>
> -- 
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>
> 



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