C-Cube Message Board - Msg: 3795878

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Technology Stocks : C-Cube

CUBE 35.90

+0.2%

Dec 26 9:30 AM EST

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To: Stoctrash who wrote (31297)	3/22/1998 3:30:00 AM
From: ViperChick Secret Agent 006.9	Read Replies (1) of 50808

I cant sleep tonight..so I went to go look at how much sense this play of yours makes with SPECIFICS because that is the ONLY WAY ANYONE SHOULD EVER CONSIDER A TRADE I didnt feel it made sense based on what I know of options prices..but I needed figures to find out if it did and that is what i wanted from you since you recommended this kind of option play i dont have access to precise historical information so this is a guesstimate based on quote.com's charts... around March 3 you would have gotten less than 1/2...looks like 3/8 MAYBE (but more likely a 1/4 since you were selling but lets give it 3/8)...depending on the bid /ask for march 22.5 calls.. for the 17.5 puts you would have gotten probably 1/4 since you are selling trading range 18-24 17.5 is below 18 so if you were comfortable in your numbers that leaves 1/4 profit on the 17.5 but if Cube had gone to 24...you would have been out 1.5 or 1500 for 10 contracts so it goes like this on 10 contracts..max profit if all expire worthless approximately 625 not including commissions (and it probably would have been less..'cause I am thinking you could only get a quarter for those 22.5) if cube went to the top end range at 24 loss would have been 875 (1000-625) but remembering that these are short positions and very risky...and you could have ALOT more loss than that.... so for a maximum profit of 625 on 10 contracts with a idea that you could reasonably lose 875 if it goes to your uppper trading range... with unlimited loss potential because you are short AND you have unlimited loss on the upside AND the downside..either way it goes... not to mention tying up capital in your margin account to "cover" the short position while you are short... would you do it for 625 this is why the play makes no sense to me.... can you understand now why I have repeatedly ask you to do what i just did.... when you put numbers to it...you can see whether the risk vs reward is worth it in my opinion NO F'IN WAY

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