Quote:
Originally posted by BoNgHiTtA
Nah I am refering to say very weathly individuals that have huge positions from companys they have. Options are good tools to hedge away those risks. Infact, many very weatlhy individuals will collar positions to take loans out on principal.
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(Additionally)
Options are also sometimes used to hedge postitions while estates are being divided or in similar situations (i.e. legal disputes) where ownership of the stock is in question and cannot therefore be immediately sold.