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How to Protect Yourself From a Downside Move
We tend to start with those at the money puts that are roughly around a 50 delta, maybe slightly out of the money on the downside. We'll also take profits on those puts and roll them down to a further strike just so that if the stock bounces and goes back up we've limited our losses as well. Do you give yourself a good time on that? When we're buying options, we tend to go two to three months out. You know, and then we're fairly active.