Option Trading Loss Recovery Strategies
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How options can help you recover losses in stock investments you still want to keep.
In volatile markets, inevitable paper losses tie up capital and prevent you from moving ahead. So what do you do? Do you just wait and hope the market price rebounds? Do you cut your losses and move your cash to more promising stocks? Or are there other choices? If you still consider the company a worthwhile investment, you can use options as part of a recovery strategy.
- Pearson Education, June 2010
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