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To: Cary Salsberg who wrote (5699)5/31/2003 12:56:05 AM
From: Sam Citron  Respond to of 13403
 
Cary,

You raise an excellent point. The timing is a very important consideration with the options strategy.

I have decided to do an experiment by devoting equal dollar outlays to each position, the stock and the options spread. It will be a very strange bullish butterfly spread. The stock positions will go into self-directed Coverdell educational accounts that I will set up for each of my two children.

Thanks much for all your input.

Sam



To: Cary Salsberg who wrote (5699)6/1/2003 8:12:08 PM
From: Sam Citron  Read Replies (1) | Respond to of 13403
 
Cary, RE: What if...

you are off and it means $35 in Jan '05

Based on a $3,000 investment, you are stuck with a $3,000 loss compared to a $500 gain on the stock

you are right and it means $60 in Jan '05

Then you have a gross profit of $55,430 compared to a gross profit of only $3,000 with the stock.

you are half right and it means $48 in Jan '05

Then you have a gross profit of $27,830 compared to $1,800 with the stock.

Sam