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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: shasta23 who wrote (3158)	9/17/1998 11:22:00 PM
From: dealmakr	Read Replies (1) \| Respond to of 59879

Stefan, Another way of protecting a short would be to sell a put against it. FGII traded today between 16 1/4-18 1/4. If the Sept 17 1/2 put was sold when stock was at 16 1/2 or so you may have had a chance to reduce your risk by about a point. I don't know your entry points, but with the stock so volatile it could have provided some cushion. You would be put the stock @ 17 1/2 enabling you to cover minus the premium recieved. As the stock closed at 18 1/4, the puts could have been bot back at the close for about 3/16. I don't know if options fit with your trading plays, but can be used when volatility happens for some protection. Dave