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We trade option
for, but not limited to, the following reasons:
·
Leverage:
Using less capital to achieve larger percentage gain compared to stock
trading.
·
Choices:
Having more choices to trade a given position.
·
Hedge:
Protecting our portfolio in case the market does not go our way. Think
of it as buying insurance for our investment.
·
Income:
Creating an income stream by selling call and put.
I will cover the
details throughout this investment column.
Dennis Phan 潘家墉
12 April 2009
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