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To: Charles Tutt who wrote (134901)6/29/1999 7:59:00 AM
From: edamo  Respond to of 176387
 
charles....ototot re "profit/risk graph the same...what else is there?"

if you intend to dabble in options, you must fully understand the mechanics of the contract that you enter into. because there is similar profit and risk comparing a put sale with a call write is not to be understood as they are identical in price action. you wouldn't write a covered call at a market bottom, nor sell a put at a market top. the profit and risk is greatly altered by the state of the market, the underlying and the forward dynamic at the time of entering into the contract. to think otherwise spells disaster.



To: Charles Tutt who wrote (134901)6/29/1999 5:43:00 PM
From: Tom K.  Respond to of 176387
 
If you agree the profit/risk graph is the same, what else IS there?

Charles, time to put down the textbook and put your understanding to the test.... place some money on the line and you'll quickly grasp the differences that we speak about. Best of luck.

Tom