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Hedging with Options
Goose was obviously giddy. It was one of those trading days that ended with him just dying to get back into the office the next day and figure out how much money he had made for his shareholders (and himself and his dog). Recall that there were 3 trades Goose had put on to position himself to be long BUBB.
1. He had bought a million dollars' worth of stock: 25,000 shares at $40. That amount is now worth almost two million. Nice. A double.
2. He had bought $900,000 in the...
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