USRX /COMS - and other "stuff" Message Board

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Technology Stocks : USRX /COMS - and other "stuff"

COMS 0.00160

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Jan 29 9:30 AM EST

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To: freeus who wrote (3242)	5/11/1997 2:02:00 AM
From: Jeffery E. Forrest	of 5244

I think they are a little confused. A synthetic put is an options strategy which attempts to protect a short sale of stock by buying a call. The call acts as protection for the short stock sale. Theoretically, the risk exposure to a short sale of stock is unlimited. Buying a call limits the risk should the stock rise in price. Buying the call limits the risk to a fixed amount. Of course, this also reduces some of the profit should the stock decline in price.

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