The perfect outlook for this tactic is that the stock has a brief-phrase retracement prior to continuing an extended-time period rally.
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While in the worst circumstance, When the stock cost declines to zero, the maximum decline for this method is $ninety six for every share. It is usually important to look at the circumstance of $XYZ inventory not retracing and quickly rallying. Although the investor receives a top quality and is also inside a rewarding situation, the investor loses the chance to buy $XYZ stock at 98 and instead would need to contemplate purchasing at a better value.
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