Protect Your Hard Earned Investments Using Stock Insurance
We pay a monthly premium to insure many important things in our life. Day to day, we take comfort in the fact that if something should happen; things that are important to us are protected from unforeseen misfortune. Why then do so many Canadians fail to insure their investment portfolios? A PUT option is a contract that gives the owner the right to sell a specified number of underlying shares at a specific price for a specific period of time. Each PUT contract controls 100 underlying shares. The simplest approach is to use a strategy called a married PUT. A married put refers to the purchase of shares in a specific company in combination with a PUT option that guarantees the sale price, regardless or how far the stock price drops if you are wrong. Much like a standard insurance policy, we pay a small premium for such peace of mind. Let’s say we buy 100 shares of ABC Company at $25.00/shares for a total of $2500.00. If we wanted to protect our 100 shares, we can purchase a policy (PUT option contract) expiring in two months that will give us the right to sell the stock at $25. The premium we pay for this insurance is $1.20/share or $120. With the purchase of this PUT we not have the right to sell our shares at $25 regardless of how far the market value drops. Essentially, we are paying an insurance premium to completely eliminate the risk of loss, while enjoying 100% of the upside potential for 2 months. Attend a free 2 hour workshop and see this strategy first hand in action. Take the guesswork out of the stock market Learn to Trade: – Stocks – Stock options – Indices (DOW, S&P, Nasdaq) – Bonds – Forex (currencies) – Commodity futures + options Our Three-Step Process is Simple: – Provide our members with knowledge – Extend our ongoing support – Help our members create a disciplinary approach to the financial market 416-510-5560 Learn-To-Trade.com trade the world markets with confidence
George KarpouzisGeorge Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members.
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