Stay In!

Randall Liss talks about how to use options to take your profit on a long stock position and still stay in the game.
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Randall Liss talks about how to use options to take your profit on a long stock position and still stay in the game. In today’s lesson, Randall Liss explains how to use options to take profits while maintaining an underlying equity position. In this example, with AAPL trading at all-time highs, an investor may want to sell for fear of the stock dropping. By concurrently taking a long call option while selling the equity, you lock in your profit, and keep the possibility of getting the stock back if it in fact does go higher, and only have to pay the option premium.

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