Hedging with Options
Goose is obviously giddy. It’s one of those trading days that ends with him just dying to get back into the office the next day and figure out how much money he has made for his shareholders (and himself and his dog). Recall that there were 3 trades Goose put on to position himself to be long BUBB.
1. He 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 bought $900,000 in the $50 strike c...
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