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Strategies & Market Trends : Joe Stocks Trader Talk -- Ignore unavailable to you. Want to Upgrade?

To: Lucky who wrote (159)	2/8/2002 4:32:51 PM
From: Joe Stocks	Respond to of 787

>NVDA-cover short at 56 from 61.2< Nice trade, Lucky. Very good short term profit. Joe

To: Lucky who wrote (159)	2/10/2002 5:08:08 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 787

Lucky, NVDA-covering my short at 56 from 61.2 and selling Mar 55 calls while buying an equal amount of Mar 50 puts. Why exchange your short position for what is basically a synthetic short? I expect you collected somewhat more for the calls than you spent on the puts, but you will only see the reward for that several days down the road, if at all. What you have accomplished in the near term is the equivalent of reducing the size of your short position by about 15%. For most people it would be a lot cheaper to just sell some stock instead of selling it all and opening two option positions. What am I missing? Real nice trade on the NVDA short. Dan