Is this the best hedge in the Stock Market Casino?
Say you place a wager on ABX (Barrick Gold) at 28.00 for it to go higher
Now, would it be a good play to have an OPTION for a put of around 28.00? This way if the stock goes higher than I will not exercise my option and take the gains if Mr. Schiff is correct. If my stock gets crushed and the DOW falls to 3,000 and the stock goes to 15.00 then I can at least get in that option and take back some of my losses.
Any opinions, is this like Insurance at a blackjack table? I am not to sure yet on how to beat the options game at the stock market casino (Yes the market is a casino)
One of my favorite plays I think in this Casino game is to put a “PUT” play on companies like GM, C, BAC, GE, PM and have the put for at least six months from now and wait for them to get destroyed. But its a gamble, sort of like poker, baccarat, blackjack and sports betting.
Thank you for those whom can help with the hedge question on having a “PUT” on a stock you own long.
Peace everyone
Video posted by: EndlessMountain











