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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Gottfried who wrote (43609)3/3/2009 2:49:57 PM
From: Nancy1 Recommendation  Respond to of 95587
 
I wanted to do a calculation to see what the worst scenario might be, and found it would still give you 0.50 net profit, after commission.

The best would be it gets called out at 9, so you pocket the 0.50 in price + 1.40 on premium, minus 0.20 on put cost, and of course subtracting commission.

Even when it goes down like we see now, still gives you a buck profit.

We really need to do a hard analysis when going into this more complicated transactions, but it seems such approach is worth the effort in current envirnoment - by largely eliminating the downside risk, and offering the chance for a small win to decent win.