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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Gottfried who wrote (60455)2/13/2002 5:19:21 PM
From: Ian@SI  Read Replies (2) | Respond to of 70976
 
G.,

With your method of just buying the Call, you have unlimited upside should the underlying exceed the strike price by more than the premium plus commission.

With the spread that Sun suggested your maximum upside is 2.25 less all commissions. While it reduces the net premium paid to have some skin in the game, it does limit your potential profit.

Which is most desirable? That's up to you to decide at any point in time.

Ian