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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (7617)	11/29/1997 4:50:00 PM
From: Dan Ross	Respond to of 9285

I just did a hedging strategy project for Sabre and what you suggested was a great idea.... However, I have told myself that I won't allow myself to touch options until I test some of my predictions.....Furthermore, I will take F&O next semester from our options nut Jeff Fleming....the guy is smart!!! Great advice for the thread though.... Dan Ross

To: CalculatedRisk who wrote (7617)	11/30/1997 9:36:00 AM
From: Brad Davies	Read Replies (1) \| Respond to of 9285

Bill, thanks for your description of a "synthetic short". It seems to me though, that if you are bearish on a stock, you would still be better off simply selling the naked call. The downside is that your profit is limited to the premium, (while loss is theoretically unlimited as with any short). Your upside is the fact that you get that premium,(and don't have to give the MM two spreads) and the stock doesn't have to tank, but rather just tread water. If you are fundamentally bearish on the stock, why not just sell the call? By the way, does Schwab expect a minimum size account to give you interest, and do they differentiate between stocks that they will/will not give interest on? Regards Ron