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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: ChanceIs who wrote (84753)5/18/2007 10:46:56 AM
From: chowder  Read Replies (2) of 206325
 
>>> I would have had greater profits if I had held the stock, but I have less cash tied up and my potential loss is $6.40 instead of $39.55. <<<

In theory, one could lose $39.55. In reality, who in the world would watch something go all the way down to nothing? Certainly not you. Anybody who did, deserves to lose their money.

I don't do options because I haven't studied the strategies necessary to show consistent profits. Can you lose all of the $6.40? Does that happen if the options expire worthless?

In that case, it's a 100% loss. Granted the numbers are smaller, but they do add up over time.
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