Safeguard Scientifics SFE Message Board

STOCKTALK

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.

Technology Stocks : Safeguard Scientifics SFE

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: FtrPlt who wrote (2851)	5/17/1999 3:23:00 PM
From: michael r potter	Read Replies (2) of 4467

-OT- Don't intend to pursue this discussion much further, because of the presumed limited interest of others, but selling the 115 put has a totally different risk profile. It is the equivalent of going long additional SFE sh. with an effective buy price of $80 3/8 and a willingness to cap the upside at $115. Ex. one is long 1000 sh SFE. Sell 10 Aug. 115 puts. Now long the equivalent of 2,000 sh. SFE with the second long position having an effective buy price of $80 3/8 and the upside capped at $115. May be an appropriate thing to do, but would be entered into for much different reasons than selling a covered call. [Plus, even though one would have the exposure of an extra 1,000 sh. unlike an actual share owner, one would not be eligible for any rights or IPO of course.] The open interest in the $115 aug. put is almost non-existent, only 1 contract OI. If you or others would like to pursue this discussion, would suggest private messages. Mike

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next