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Strategies & Market Trends : Contrarian Investing

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To: fedman who wrote (124)9/14/2006 6:00:01 PM
From: jsabelko  Read Replies (1) of 4080
 
Yeah i know options don't exist for many small caps but I think you underestimate how options illiterate I am. I have no idea what you just said really means. I know this is all hypothetical but so what you're saying is one could buy april puts $5 for x cost giving them the right to sell at $5 through april. Then at the same time buy the stock today and hold it. As long as it goes up more than the x cost you come out ahead and if it goes down no big issue as you have the puts to cover the shares (losing the x cost only). Is that right?

thanks,
joby
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