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

To: Judy who wrote (33786)	10/11/1998 6:38:00 PM
From: Knighty Tin	Respond to of 132070

Judy, this is already a no risk trade if I do nothing, as my $19 call struck at $60 less my $7 1/4 put struck at $50 leaves me with $11 3/4 net, with $9 1/2 maximum risk I have on the difference between the lower strike price and the price I paid for the stock. In other words, my $59 1/2 stock can lose $9 1/2 before my long put starts insuring me. But, since I have a $19 short call, that more than covers the risk and the cost of the put. And that is worst case, even if the stock goes to zero. MB