(excuse the legalese ....)
There are several courses of action possible when you've
issued a statement which, taken by itself, out of context,
or having been mis-stated, is demonstrably false or non-sensical. Two of these courses, which are my best
guesses as to the two which edamo considered, are
1. Correct the mistake. Claim it wasn't meant literally,
or that by example it could be true in certain cases, or
that you simply misspoke.
2. Round up as much erroneous arguments as possible to
support the original statement, attack those who have
pointed out the mistake, etc.
edamo has obviously chosen the latter course. Now your
lecture on strategy etc. is interesting and it points to
my contention that even comparing the two approaches - selling puts and buying calls - is inappropriate, but the
proposition that the buying power used should be compared
is an absurdity.
To compare $1M in call purchases to $1M assignable stock
is also innapropriate, except that both have a maximum
loss of $1M less collected premiums. If the stock advances
then the result in one case is two islands, otherwise you
can buy two cafeteries with the 10% or so collected in puts. |
