I have a large number of FB stocks (why I didnt sell them before is another story). Since the price is down currently I do not want to sell them, yet at the same time I want to hedge against them falling even further.
I was thinking if buying puts – if the stock falls I make some money, if the stock rises my portfolio increases. My concern is I have been burned by options trading before and Im a relative newbie yet I cant get myself to see this one stock dragging down my portfolio value.
What are your thoughts?
I have < 100 shares so cannot buy covered calls.
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