SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Tom K. who wrote (7825)5/24/2000 7:56:00 AM
From: edamo  Read Replies (1) of 8096
 
tom..."infinite return"

you bring up an important fact, that most fail to grasp. on any sale, be it put or call, your return is "infinite", as their is no cash outlay. a true calculation can't be made against capacity of cash or margin, and to attempt to factor a "loss of opportunity" cost is a bit esoteric, as you are not losing any opportunity as you have the hard cash or collateral invested fully and earning at least +5%

good to see strategies being posted that are more in tune to the current market, instead of trying to trade the long side...........it's a short market....best way to "go long" is by "going short"....as in selling versus buying.....

so much for the theory of ever buying otm calls.....

the market gives, and it usually takes back more then it gives....

cash is king at the moment!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext