Example:
XYZ, a major media company is at $47. You are long 100 shares as of last week
and want to be in it for the long run. However, news has just been reported that
internal conflict may result in selling a portion of the company. If this
occurs, there may be a financial slowdown until the end of the second quarter.
Outlook:
Bullish on XYZ but concerned that with this latest report a sell-off of XYZ may
be severe.
Possible strategy:
Protective Put:
For more information on the risks and benefits of this strategy, click here.
Are you looking for a particular strategy? Click here to view an archive of previous eNews strategies.