SI
SI
discoversearch

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.
Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?


To: Bear Down who wrote (4305)10/19/1998 1:43:00 PM
From: Peter V  Read Replies (1) | Respond to of 18998
 
The reverse combo is an option play: Buy the puts and sell the calls to offset the cost. Just make sure it goes down, or you're in deep doo doo on the calls.



To: Bear Down who wrote (4305)10/19/1998 2:04:00 PM
From: Sir Auric Goldfinger  Read Replies (2) | Respond to of 18998
 
Patented Pinky Reverse combo is the sale of a call to finance the purchase of the like put. eg: we sold the Nov 45 calls and used this money to finance the purchase of Nov 45 puts. The net effect is that we have the exact equivalent of a short on a hard to borrow stock that in our opinion is going south soon.

It is Pinky Patented because the press referred to Pink's use of it as a "sophisticated shorting methodology."