Financial advisors generally agree that you should have no more than 15% in any one stock position in your portfolio.
By using options, the trader gains leverage and can achieve larger returns than those seen by tying up the same amount of money in a short stock position.
In order to buy a large enough position in a stock for the holding to have any impact at all on the overall portfolio, the big funds need to make big purchases of securities.
If it were to drop further, I would overweight it in my clients' portfolios, which already have a full position in the stock.
The long-term investor with a stock position in the shares in question wins either way.
The risk in Apple stock has been rising, which is why I have been recommending taking partial profits in Apple stock while still holding a healthy long position in Apple.
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Note: The author, an investment fund manager, holds a personal position in Tesla stock.
The calls may have been written against a long position in the stock, or may have been sold outright.
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Reckless traders take on way too much risk and the position in a stock, bond or ginned-up derivative du jour collapses.
This rally is not without its drawbacks, leaving WYNN with a 14-day RSI of 73.24, placing the stock in a potentially overbought position.
Interestingly, Herbalife spiked as Icahn started speaking, despite the fact the billionaire investor has never revealed whether he has a position in the stock.
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And Vedanta Resources, a diversified mining company, saw the short position in its stock decline by 1.43% over the past month, as of June 2.
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Disclosure: The author does not have a position in Apple stock.
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Ibbotson's Zebra Capital isn't a major market mover, yet it still can spend weeks trying to assemble a position in a stock that doesn't trade much.
On Halloween, Carl Icahn disclosed a position in Netflix stock and call options that could give him a nearly 10% stake in the streaming video company.
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There is a significant short position in this stock and considerable potential for a major short squeeze if the results in the next few weeks are good.
In Buffett-land, the big headline this past week was the revelation that Berkshire Hathaway ( BRK.B) established a new position in the stock of John Deere ( DE).
Icahn rebuilt a position in the stock a year later.
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Miller also defrauded another broker-dealer into taking on a significant short position in Apple stock to hedge against the large purchase of Apple stock he was executing at Rochdale, authorities said.
In the interest of disclosure, I am nothing more than a casual user of the eBay sites and services and have no extreme affinity or hatred for the company (no position in the stock either).
Since we have now lost the candidate in this presidential election who spoke for one of the grandest of all American traditions, that of economic growth, we are in a position to take stock of a few things.
Lehman's public relations campaign is made doubly difficult by the public critiques of a well-known investment manager, David Einhorn of Greenlight Capital, who has taken a short position in the stock, which means he will profit if it falls.
In other words, these ETFs are required to disclose holdings daily, so if a portfolio manager is taking a big position in a stock it could expose him to speculators that would try to front run his portfolio moves.
The investor responsible for the transaction may be taking an outright bearish stance on the stock, or may be using the position to hedge long stock in DNKN through earnings.
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Facebook could ignore all the naysayers (about how this IPO is the most foolish in the history of IPOs) and just buy a huge position in Apple and see its stock appreciate.
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Long-term investors who build a position now in Apple stock will be very happy by the holiday season.
These contracts were likely purchased in order to protect a long stock position.
With gold and gold stocks due for at least a bounce from deeply oversold conditions, now may be a good time to establish a position in a mining stock with a decent dividend.
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"An advantage of a PIPE is that an institutional investor can take a large position in an illiquid stock, " said Byron Roth, chairman of Roth Capital Partners, which raised the most money in PIPE deals last year.
Morgan Stanley surprised markets by declaring it had taken a sizeable short position in HBOS's stock.
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