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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Bat5454 who wrote (33735)10/10/1998 5:02:00 PM
From: Knighty Tin  Read Replies (1) | Respond to of 132070
 
Bruce, With spread conversions, it matters, because the object is to make the higher of the two possible returns, not the lower. So, you want a stock likely to tick up near term.

It also matters because you need a highly volatile stock to get the right relationship between the option premiums.

With straight conversions, where the call you sell and the put you buy are struck at the same price, the name of the stock hardly matters, especially now that nobody is rich enough to have dividends of any size.
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