More importantly, the protection offered by the calls is only ... Despite its drawbacks, the strategy of using calls to hedge a short position can be an effective one. In a best-case scenario ...

Although the investor has to pay a premium for the option, it protects their position from potentially higher losses. Short sellers can protect their positions by setting a buy-stop order with an ...

If you can’t meet the margin call, Charles Schwab could liquidate your position for a loss without informing you. Here are the steps to get started on a short position Your first step is to ...