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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Marconi who wrote (14925)10/29/1998 11:51:00 AM
From: RockyBalboa  Read Replies (1) of 18691
 
Marconi, thank you for your detailed reply.

The synthetic short should contribute to more linear movements in portfolio value in comparison to a short call. Sure, shorting the call is more an expiry play to see it expiring worthless.

Which brokers do you use? I've looked at DLJ but they do not service non resident foreigners. So I turned to TradeOptions (a division of Preferred Capital Markets), of whom I've heard nothing here on the board about their credibility.

I have calculated selling both deep ITM puts and calls, say C90 and P140 for AMZN (Base 117). If it is the Dec contract, the two together pay off some $60 on the bids when the intrinsic value is 50+comissions. The risk to lose at expiry is limited to crossing $80 or $150. What do you think?

C.
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