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Strategies & Market Trends : Tech Stock Options

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To: ViperChick Secret Agent 006.9 who wrote (37088)3/20/1998 4:58:00 PM
From: Peter V  Read Replies (1) of 58727
 
Hi lisa! Responding to your comment from the "other" thread, because the final price hit in between the spread, you got called away on the ones you sold, but had to cover them without using the calls you bought, right? so your profit was cut by whatever you had to pay for the stock to cover the calls. Or I guess in most cases you would simply trade the options rather than hassling with the stock, and your profits are limited by what you have to pay to buy the calls back (and the calls you bought expire worthless). If the stock had gone up by a few points but still landed in between the spread, you would have made even less money, right? Does it make a difference if the spread changes drastically after you do the initial transaction?
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