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Have you ever used Derivatives and Stocks together?
While both stocks and derivatives offer a degree of risk, as with any investment, you can use derivatives as an "insurance policy" for your portfolio.
For example, if you have a portfolio of Dow stocks, you could take out index options to protect you position if the market fell. You could also write options for premium against your portoflio, etc.
Have any traders used the two together to create / protect a position?
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