The client wants to protect her gains from owning a particular stock that has recently risen in value.
The right answer is that she can do it with a cover call strategy (writing the call on that stock).
How is that correct?
Wouldn’t that limit her upside rather than protecting her gains?作者: bluejazzy 时间: 2013-4-8 10:10
premium from call short provides cusion for downside protection
