Tuesday, November 15, 2005

How to Buy Insurance On The NYX Deal

Savvy investors realize that shelling out a couple hundy to purchase '06 puts with a decent strike (like the jan 35s) is the way to purchase insurance on your ax shares and lock in most of the impressive gains that have already been made.

People buy health insurance for the if-come they'll get sick. Folks buy auto insurance for the potential that they'll wind up in a car accident. Gamblers purchase insurance when the dealer shows an ace to hedge the chance that he lands a blackjack.

Investors purchase puts to lock in gains. If options are foreign to you, consider putting in a stop-loss order.


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