What caladri says, plus it's possible to limit the potential loss by the use of derivatives: http://en.wikipedia.org/wiki/Collar_%28finance%29 http://en.wikiped

What caladri says, plus it's possible to limit the potential loss by the use of derivatives: http://en.wikipedia.org/wiki/Collar_%28finance%29 http://en.wikipedia.org/wiki/Collar_%28finance%29