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Strategies & Market Trends : Canadian Options
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To: Jan Johnstone who wrote (674)9/14/1997 2:19:00 PM
From: Goldberry   of 1598
 
Jan could you give an example of how this can make a profit. As I see it if you pay a huge time premium for a long-term put and sell short term puts against it if we get the 10% correction in the short term then the time premium will disappear with the drop and you will get exercised out from the put you wrote.

Graham
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