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Trade of the Week: Buying cheap protection

Buying options to protect against a sharp drop in shares that have recently staged an aggressive rally or whose price may continue to climb looks good value

Buying options to protect against a sharp drop in shares that have recently staged an aggressive rally or whose price may continue to climb looks good value.

In its equity derivatives strategy report released last week, Deutsche Bank recommends locking in existing gains against any reversal of fortunes and taking a bet on a continuing rally.

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