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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (30483)	12/5/1997 2:14:00 PM
From: Esteban	Read Replies (1) \| Respond to of 58727

Tom, Thanks for considering my question. If you bought a contract and sold one would that not be a wash?? Yes it would, but if you had sold one contract and bought the underlying cash (impractical I know) you would profit by the difference in fair value between the purchase date and the settlement date, I think. What I'm seeing here is that in a completely flat market, selling a contract actually results in a small profit, and buying results in a small loss, thereby imbibing a bearish bias to the futures based on the declining fair value. If you still don't understand the question, just keep pestering me, I'd really like to get this clear in my mind. Esteban