For those of you that did't catch the article we posted at the Montreal Exchange's blog spot optionmatters.ca, I thought I would post a similar article on repositioning a losing stock position using put options. Given the fact that we are now in the midst of a moderate stock market correction, aka pull back, aka retracement etc, I thought our readers might find it relevant and perhaps even a little helpful.
The stock markets have been kind to investors over the last several months. Many international markets are up anywhere between 2-10% in the first quarter alone. But not every investor can share in the celebration. When reviewing the portfolio of an average Canadian investor it has been a mixed picture.