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URL:  https://boards.fool.com/you-can-always-buy-protection-with-a-17390817.aspx

Subject:  Re: Slightly OT: Date:  6/20/2002  12:58 PM
Author:  Vulstock Number:  41880 of 50600

You can always buy protection with a "put" but it probably costly (commissions) with a 100 share transaction and one put. Maybe doable with 1000 shares and 10 puts.

For example:

Buy a stock at $25
Buy a put with a strike price at $25

Also the put has a time limit but some stocks have options going out years. A long term put option cost more than a short term put option.

At least you are protected if the stock goes down at the cost of the put option plus commissions before the expiration of the put option.


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