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.
We pay a monthly premium to insure many important things in our life. Day to day, we take comfort in the fact that if something should happen, things that are important to us are protected from unforeseen misfortune. Why then do so many investors fail to buy stock insurance?