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Politics : Formerly About Applied Materials
AMAT 319.11+5.7%Jan 15 3:59 PM EST

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To: VinWood who wrote (11099)11/14/1997 7:41:00 PM
From: Michael R  Read Replies (1) of 70976
 
Vince,

And I could loose the treasure even faster than I discovered it.

I think for a portfolio heavily weighted in leaps or other more risky derivatives, it's crucial to use some method to protect yourself (myself in this case) from the unexpected. My broker, T Rowe Price, said that they could put in a stop loss order - but setting a stop on a LEAP would require a little more art than would be needed for stocks. I am wondering about hedging methods buy a leap put for each call or write a 2000 and invest the premium in the 1999. I don't know the best method yet, I want to keep it fairly uncomplicated. Right now, my rule is if something should happen to make me ask 'Would I sell the stock?' - I will surely leap from the LEAPS.

Michael
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