Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : NEXTEL -- Ignore unavailable to you. Want to Upgrade?

To: John F. Dowd who wrote (3665)	12/12/1997 6:50:00 PM
From: P.T.Burnem	Read Replies (1) \| Respond to of 10227

I get the part about the put and the call but why should you wind up with half if it hits the strike price on the nose. Sorry, I should have been more clear with my terminology. My portfolio is typically comprised of 8-12 "positions" of roughly equal size (dollar-wise), for the purpose of diversification. Sometimes, as in the case of NXTL, I buy 1/2 position and write covered calls and puts at the same strike price (in this case, $25). If NXTL closes @ $25, both the calls and puts will expire worthless and I'll keep the 1/2 NXTL position that I already own. PTB