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To: GRANOLA who wrote (58164)12/30/1999 1:45:00 PM
From: yzfool  Respond to of 152472
 
Also, the covering trigger is more itchy assuming these are margined shorts. And of course upside has potential for infinite losses whereas the downside presence limited profits.



To: GRANOLA who wrote (58164)12/30/1999 3:41:00 PM
From: JGoren  Read Replies (1) | Respond to of 152472
 
I would love for you to explain mathematically how the split increases the risk by four times?

Last time I did my multiplication and division tables, the price to cover is divided by four.

/s/ A stupid Wharton undergrad, without an MBA.