Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Portfolio Protection + Money Management for the Long Term -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (7)	4/8/2000 4:37:00 PM
From: BDR	Read Replies (1) \| Respond to of 57

Working my way through McMillan I came across the following statement that clarified for me the different roles of futures and options in hedging. He is talking about selling futures v. buying puts: "The main difference between options and futures is that futures lock in a price while options lock in a worst case price (at greater cost) but leave room for further profit potential." (p 545) Selling a future against a long stock position then is analogous to shorting against the box. Protected against losses but also prevented from participating in further gains. Best used if one is absolutely, positively convinced this is the top, correct? Can one normally trade futures in a retail brokerage account. I am set up to trade options short and long, covered and naked. Do I need to get additional clearance for futures? I'll have to ask Fidelity.