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• Archive: http://archive.is/Ywl8w This very powerful course is divided into two independent sections:1.
• Advanced Stock HedgingStock ownership is risky, yet it can be effectively managed by using a married put and/or collar position.
• The downside to the put purchase is that an at-the-money put is too expensive to buy, so most traders buy an out-of-the-money put.
• This leaves a gap between the stock price and the put strike and a possible sinkhole of loss.By using put spreads and/or butterflies in the correct manner, you can effectively get the same amount of protection as if you had bought a naked put – but at a greatly reduced price.
• And the best part is that the long butterfly spread can be moved right up to ATM or even ITM, thus offering immediate protection.This is a MUST have for any serious stock trader.2.