Paired Trades and Hedging Strategies Message Board

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Non-Tech : Paired Trades and Hedging Strategies

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To: Sam Citron who wrote (40)	12/3/2004 2:54:45 PM
From: Biomaven	Read Replies (1) of 136

The way I look at it is when I sell an OTM CC, I trade a pie in the sky for something real. I trade an uncertain and unlikely contingency (that company XYZ will go up by more than X% in a fixed time period) for actual money in the bank. Same is true if you sell part of your holding outright. Most of the greeks aren't worth bothering about. Delta is the most important - it simply reflects how much an option will move based on a move in the underlying security. My emphasis is on general rule - I do believe that special situations exist where the market is slow to react. Peter

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