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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?


To: DAVID IN B.C. who wrote (1273)8/17/1998 12:05:00 PM
From: Vectra  Read Replies (1) | Respond to of 1598
 
Although I don't know what your market outlook is, the most likely way to protect this position now is with a Bear Spread or what is also called a protective collar.

That is selling a higher strike call (than the current market price of the stock) and purchasing a lower strike put (than the current market price of the stock). This position will offer some protection if you are concerned with the market moving lower but not at a dramatic pace.

V