Hedging Stock Positions With Options: Too Bad I Didn't Do It On Thursday

It’s impossible to determine the success of an options trading strategy until liquidation. There are, however, for certain traders, strategies which will essentially enhance their bottom line under most circumstances. Hedging is a successful way for money managers, individual investors and companies to lock in costs and limit risk. It provides the justification for the existence of futures trading everywhere. The markets provide an environment for hedgers to manage risk and speculators to reap...