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Technology Stocks : USRX /COMS - and other "stuff"
COMS 0.001600.0%Jan 29 9:30 AM EST

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To: Jeffery E. Forrest who wrote (3243)5/11/1997 8:14:00 PM
From: freeus   of 5244
 
OK hence the name "synthetic" because the person is trying a risky strategy and wants it to not be so risky. At the same time.
Buying an option: Does that mean if I think usrx is going up and it is at 60, I buy (much more cheaply than buying the stock) options on buying it at 60 or 61, etc and then if it goes up I can sell that option to buy at whatever price I said or I can actually buy the stock at that price even though it has gone up. ???
If it goes down when I bought an option for it to go up I have to then cover by buying the stock at the price I said? Or try ing to sell the option at a reduced price to someone who still believes it will go to higher than that price?? So the risk is much bigger than buying the stock because I woud have access, or responsibility for more shares.Do I have the general meaning? Of course I would never do this with usrx because it is too nutty, but it might make sense to buy an option for microsoft to go up because it always seems to.
Does the option have an ending date, like my intel warrants?
Freeus
Is there a thread that gives a short course in this stuff?
Have you made money doing this? Lost money doing this? What do you think of it as a strategy in general? If you use it, what is your criteria for a stock for it to be a good stock to do this with? Is this too many questions? I heard someone talking about this on the radio besides seeing people chat about it here.
Freeus
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