Position Sizing Questions for Mr. Now
First off, thank you for your Trading 101: Position Sizing post, I found it very helpful. But I have a question about one of the examples.
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Your current account value is $45,000. One percent is $450. $450/$6 = 75 shares. For maintaining 1% risk, you can buy 75 shares of XYZ @ $80 with a protective stop loss at $74. You have approximately 1% of the portfolio at risk on this play.
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The above example describes my situation exactly.
But, how (or where) can I buy 75 shares of stock? Everyplace I've looked requires a minimum purchase of 100 shares.
Is investing $450 in a call option on the underlying stock a reasonable alternative?
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