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Title: Option spreads

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Subject: Business
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Date: March 17, 2009
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Length: 2 / 359
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Essay text:

A. Protective Put: An investor buys/already holds a stock and buys a put option. It is bearish. This may be done simply as a protective measure to reduce risk. Another reason for using this strategy is that the investor may hold a stock and anticipate a decline in its value, but to certain considerations such as tax, may be force to or want to hold on to it...

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A. Protective Put: An investor buys/already holds a stock and buys a put option. It is bearish. This may be done simply as a protective measure to reduce risk. Another reason for using this strategy is that the investor may hold a stock and anticipate a decline in its value, but to certain considerations such as tax, may be force to or want to hold on to it...

Showed next 250 characters

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