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Strategies & Market Trends : Trading For A Living

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To: the options strategist who wrote (281)	5/27/1998 2:25:00 PM
From: Nemer	Read Replies (1) of 1729

Jen: ----"buy it (stock) and short it against the book, and sell puts..." means. lets see if I understand the question fore I attempt to answer.... 1---- buy it ----- I suppose this you do understand..... 2 ---- short it against the box ---- means that you "sell short" stock that you already own .... 3 --- sell puts ---- several possible motives will preceed this action... ....... a) .... you feel that the stock will increase in price and wish to profit from your analysis so therefore you can place the moneys generated from the sale of the puts into your pocket...... ........b) .... you feel the stock will decline in price but will only be a temporary decline and you feel comfortable owing the stock at the "put price"and the revenue generated will effictively lower your ownership price........ ........c).....there are multi more reasons.... Regards ---Nemer

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