Q: Hi,
I have a pretty big position in AVO about 15% which I bought at $32. It has been trending down and I was not able to sell it to reduce my exposure. Today I have purchased 5 put options with 28 strike and sold 5 call options at 32 strike. Do you think it is wise to do this to protect the downside. This will also restrict my upside though.
I have a pretty big position in AVO about 15% which I bought at $32. It has been trending down and I was not able to sell it to reduce my exposure. Today I have purchased 5 put options with 28 strike and sold 5 call options at 32 strike. Do you think it is wise to do this to protect the downside. This will also restrict my upside though.