Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (1427)	1/21/2000 3:43:00 PM
From: Tom K.	Read Replies (1) \| Respond to of 8096

...but you don't "make on the stock drop as well".... The scenario that I recall was that the stock begins dropping...then you short it. The example that came to mind was: stock at 50, have a short PUT at 40. Stock begins to drop, short the stock before it hits 40 and you get some benefit from the stock drop if it is put to you. However, if you short below 40, there is no benefit, just protection. I submit that this would be difficult to do, so I believe that you are correct.... even more reason to avoid this crazy approach. Thanks for catching me on that. Tom