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OptionAutomator Options Trading Glossary:
Definition, Examples & Resources:Stock Replacement Strategy'
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What is Stock Replacement Strategy in Options Trading ?
Stock Replacement Strategy
An investment strategy in which deep in the money call options are purchased to closely replicate the payoff of underlying stock. This is done to reduce risk in the trade and the capital outlay.
Previous term : Short Covering
Next term : Thales of Miletus
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