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    you to
    continue your capital appreciation as the stock trades up while
    limiting your loss to a fixed, known amount.

    In cases such as this one, the purchase of an at-the-money or
    slightly in-the-money put will ensure you get a good sale price
    if the stock heads down and allows you ongoing profit if the
    stock continues up.

    Of course, if the stock stays still, you would lose the amount
    of premium you spent on the put. If the stock goes up, it would
    have to trade higher than the amount
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    The Protective Put Strategy can be adjusted to address the
    particular lean that the stock owner has at a particular time.
    (The term lean describes the stock owner’s perception of the
    directional strength of the stock.)

    At any given time, an investor could feel that a stock may go up
    or down, a little or a lot, or just stay where it is. The
    protective put is not a position you would put on if you feel
    that the stock you own was going to consolidate for a while. You
    would have a loss in the stagnant lean scenario since the stock
    made no gain but you were out $1.00 for the purchase of the put.

    However, the situation is different in a bullish lean scenario.

    A stock that has the potential to rise quickly also has the
    potential to fall just as quickly. A stock that has substantial
    potential gain has an equal potential loss.

    An investor choosing to buy a stock like this should have more
    protection to the downside then a covered call can provide and
    at the same time more allowance for a larger upside potential
    than the covered call allows.

    This is a perfect time to use the protective put strategy. The
    purchase of an out-of-the-money put will be a relatively
    inexpensive investment but will provide the kind of results that
    will best fit a bullish lean.

    You will have maximum downside protection with all the room you
    need for your stock’s potential run up. Of course, this comes at
    a price. You must pay for the protection and freedom this
    position can provide.

    The protective put can also be used when you have a little
    bearish lean on your stock. Let’s say that you own a stock that
    has taken a very nice run up. The stock has gotten to a point
    where you think about possibly selling and taking your profits
    but are afraid to because you feel it may still run up more and
    you will not forgive yourself for getting out too early.

    Instead of selling the stock and missing out on the continued
    run, look into buying a put for protection. It will allow you to
    continue your capital appreciation as the stock trades up while
    limiting your loss to a fixed, known amount.

    In cases such as this one, the purchase of an at-the-money or
    slightly in-the-money put will ensure you get a good sale price
    if the stock heads down and allows you ongoing profit if the
    stock continues up.

    Of course, if the stock stays still, you would lose the amount
    of premium you spent on the put. If the stock goes up, it would
    have to trade higher than the amount
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    gnant lean scenario since the stock
    made no gain but you were out $1.00 for the purchase of the put.

    However, the situation is different in a bullish lean scenario.

    A stock that has the potential to rise quickly also has the
    potential to fall just as quickly. A stock that has substantial
    potential gain has an equal potential loss.

    An investor choosing to buy a stock like this should have more
    protection to the downside then a covered call can provide and
    at the same time more allowance for a larger upside potential
    than the covered call allows.

    This is a perfect time to use the protective put strategy. The
    purchase of an out-of-the-money put will be a relatively
    inexpensive investment but will provide the kind of results that
    will best fit a bullish lean.

    You will have maximum downside protection with all the room you
    need for your stock’s potential run up. Of course, this comes at
    a price. You must pay for the protection and freedom this
    position can provide.

    The protective put can also be used when you have a little
    bearish lean on your stock. Let’s say that you own a stock that
    has taken a very nice run up. The stock has gotten to a point
    where you think about possibly selling and taking your profits
    but are afraid to because you feel it may still run up more and
    you will not forgive yourself for getting out too early.

    Instead of selling the stock and missing out on the continued
    run, look into buying a put for protection. It will allow you to
    continue your capital appreciation as the stock trades up while
    limiting your loss to a fixed, known amount.

    In cases such as this one, the purchase of an at-the-money or
    slightly in-the-money put will ensure you get a good sale price
    if the stock heads down and allows you ongoing profit if the
    stock continues up.

    Of course, if the stock stays still, you would lose the amount
    of premium you spent on the put. If the stock goes up, it would
    have to trade higher than the amount
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    ance for a larger upside potential
    than the covered call allows.

    This is a perfect time to use the protective put strategy. The
    purchase of an out-of-the-money put will be a relatively
    inexpensive investment but will provide the kind of results that
    will best fit a bullish lean.

    You will have maximum downside protection with all the room you
    need for your stock’s potential run up. Of course, this comes at
    a price. You must pay for the protection and freedom this
    position can provide.

    The protective put can also be used when you have a little
    bearish lean on your stock. Let’s say that you own a stock that
    has taken a very nice run up. The stock has gotten to a point
    where you think about possibly selling and taking your profits
    but are afraid to because you feel it may still run up more and
    you will not forgive yourself for getting out too early.

    Instead of selling the stock and missing out on the continued
    run, look into buying a put for protection. It will allow you to
    continue your capital appreciation as the stock trades up while
    limiting your loss to a fixed, known amount.

    In cases such as this one, the purchase of an at-the-money or
    slightly in-the-money put will ensure you get a good sale price
    if the stock heads down and allows you ongoing profit if the
    stock continues up.

    Of course, if the stock stays still, you would lose the amount
    of premium you spent on the put. If the stock goes up, it would
    have to trade higher than the amount
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    e.

    The protective put can also be used when you have a little
    bearish lean on your stock. Let’s say that you own a stock that
    has taken a very nice run up. The stock has gotten to a point
    where you think about possibly selling and taking your profits
    but are afraid to because you feel it may still run up more and
    you will not forgive yourself for getting out too early.

    Instead of selling the stock and missing out on the continued
    run, look into buying a put for protection. It will allow you to
    continue your capital appreciation as the stock trades up while
    limiting your loss to a fixed, known amount.

    In cases such as this one, the purchase of an at-the-money or
    slightly in-the-money put will ensure you get a good sale price
    if the stock heads down and allows you ongoing profit if the
    stock continues up.

    Of course, if the stock stays still, you would lose the amount
    of premium you spent on the put. If the stock goes up, it would
    have to trade higher than the amount
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    you to
    continue your capital appreciation as the stock trades up while
    limiting your loss to a fixed, known amount.

    In cases such as this one, the purchase of an at-the-money or
    slightly in-the-money put will ensure you get a good sale price
    if the stock heads down and allows you ongoing profit if the
    stock continues up.

    Of course, if the stock stays still, you would lose the amount
    of premium you spent on the put. If the stock goes up, it would
    have to trade higher than the amount you spent on the put before
    your long stock’s upward movement starts to make you money
    again.

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