Tidbits Message Board - Msg: 14086660

STOCKTALK

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.

Pastimes : Tidbits

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Clappy who wrote (700)	7/21/2000 12:46:18 PM
From: edamo	of 1115

clappy.... "leaps" by roth explains in simple language the mechanics of options and applicable strategies....."leaps" are options with a longer time frame(39 months max)....a leap as it gets within 6-9 months of expiration actually becomes a common option. short call more aggressive....buying a put. when you sell a call, be it covered or not, it is not extremely bearish, for you can profit from neutral performance....you keep the premium and retain the stock(if covered write), providing the the stock trades below the strike at expiration....again this is a basic explanation. buying a put, entails taking money out of your pocket for the premium/right to assign the stock. if the stock trades above the strike at expiration, you lose your premium...in fact you are in a loss position to the point where the stock trades lower then the strike less premium paid....the put buy requires the stock to go down. don't even consider opening an option position until you are familiar with terminology, mechanics, and most of all risk.... don't feel you are losing opportunity by not jumping in....opportunity always presents itself....loss of capital negates ability to take advantage of opportunity! good luck..ed a.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next