The Amateur Traders Corner Message Board

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.

Strategies & Market Trends : The Amateur Traders Corner

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Art M who wrote (11615)	7/11/2001 1:23:46 PM
From: RockyBalboa	Read Replies (1) of 19633

TNOX trades 14.30 the option with strike 15 and only good for 8 days trades 1.25 (8.7%). So, a 8% loss in the stock is easily covered. Above 15, the option gets called and I keep the premium and .70 gain in the underlying. Makes about 13%. Like a synthetic put with the difference that the 15er put does not pay out that well. If I sell the put I get the stock put so are behind 70 and only get 1.8 premium which is also the maximum gain.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next