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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?


To: MythMan who wrote (62731)9/17/1999 5:04:00 PM
From: pater tenebrarum  Respond to of 86076
 
MM, it has to do with naked calls...say you sell 100 MSFT Sept 90 calls at 2 1/2 and MSFT rises over 92 1/2 before expiration. in order to avoid a loss, you then buy 10,000 MSFT shares. then you are 'delta hedged'. the buyers of the calls are assigned the shares upon expiration. after expiration they must sell the shares to lock in their profits.



To: MythMan who wrote (62731)9/17/1999 5:10:00 PM
From: Mike M2  Respond to of 86076
 
MM, nice article about money & debt - the tough love theory gold-eagle.com ho ho ho Mike