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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO) -- Ignore unavailable to you. Want to Upgrade?


To: billy d who wrote (2467)10/8/1998 6:17:00 PM
From: Ian@SI  Respond to of 6439
 
Billy,

When you short a Put, you get the Premium for the Put and assume all the downside risk below the strike price. When you buy a call, you give someone else the Premium in order for all the benefit above the strike price.

These are not the same.

Ian.

P.S. If you don't know how to do it, you shouldn't even think of it without first taking some training on Options Trading. Playing with options without knowledge is a good way to quickly leverage yourself into the poor house. ... which I hear are coming back into fashion. :(



To: billy d who wrote (2467)10/8/1998 6:18:00 PM
From: don kramer  Read Replies (1) | Respond to of 6439
 
? Selling(shorting) Puts, ... It takes about 4-5 years, to explain, learn and establish a successful strategy (with real money).

Great, subtle but IMMENSE differences ! ! !
Not for casual trading.

From someone who has more than a decade + years, on / off the
floors and the Street(NY) and the City(London).

dk