SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bat5454 who wrote (33735)10/10/1998 5:02:00 PM
From: Knighty Tin  Read Replies (1) of 132070
 
Bruce, With spread conversions, it matters, because the object is to make the higher of the two possible returns, not the lower. So, you want a stock likely to tick up near term.

It also matters because you need a highly volatile stock to get the right relationship between the option premiums.

With straight conversions, where the call you sell and the put you buy are struck at the same price, the name of the stock hardly matters, especially now that nobody is rich enough to have dividends of any size.
MB
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News