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Friday, August 27, 2010

Johnson & Johnson (JNJ) Hedge

I'm not sure if you saw my comments in the twitter stream, but I personally think that all larger Johnson & Johnson (JNJ) positions should be hedged, a small one, based off of the strategy that I mentioned on July 22nd, 2010. You could pick up a JNJ October 57.50 Put this morning for only 1.64 ($164.00 plus commissions per option).

Edit: I knew as soon as I knew it was time to pull the trigger, the market would rally on me. Regardless, the insurance policy is there, and it's a small premium to pay. And no, this is not for the Challenge Project. As I mentioned, this is a follow up to my comments on July 22nd, 2010.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 14 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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