Calls and Puts for Income Message Board

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Strategies & Market Trends : Calls and Puts for Income

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To: pcyhuang who wrote (981)	7/21/2007 10:47:15 PM
From: Bridge Player	of 5891

Why didn't you do as I suggested, instead of firing back a response, obviously not caring whether anything you posted made sense or not? This is what you posted: Buy the DEC AHM 12.50 put and sell the DEC AHM 20 put for $5.25 credit. Max loss = $2.25 Max gain = $7.50 Upper breakeven: $27.50 Lower breakeven = $14.75 Profitability range = $14.75 to $27.50 If I am long the 12.50 put, and short the 20 put, then is it not true that at expiration, both positions will be worthless at all prices over 20? How then, can my upper breakeven point be 27.50? Max gain = 7.50? Exactly at what price point at expiration, do I have a gain of 7.50? In fact, is it not true that my maximum gain can never be more than the 5.25 I took in as a credit to my account when I made these trades? All of us have made errors in posting from time to time. What I find inexcusable is your refusal to even examine what you wrote to determine if there was an error there or not.

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