So buying put options is the same thing as selling short?
Tscht, tscht... I never said that. Do not put words where I have not placed them.
Buying a put option alone, without disclosing the rest of your strategy, you have the same outlook as a bear (or short). You would profit from a stock going down.
Alternatively, you could also be "hedging" a long position. The main differences are:
1. the leverage employed in a put option and
2. the limited loss nature of the same in case the market goes against your put option, (the premium paid).
A pure short position, your loss can be unlimited, (at least growing, as the stock rises, and you keep the position open).
There may be other strategies employing the purchasing of put options, whereby the net result depends on the rest of your strategy, but you have not disclosed that.. (nor I am interested in knowing). Therefore, for this discussion, irrelevant. As the technical use of put options is not the point here.
The limited information available, willingly disclosed in your earlier posts, in general, the assumption would be that you were to benefit in the same way as a short, i.e., you are expecting and looking for a fall in price.
But that I do not know, as all you have disclosed here was that you were buying puts, a negative opinion of SCH, and a suggestion as to insider sales, (without proof, by your own disclosure). Therefore, the logical and reasonable assumption is that you have the same expectation of a short.
In any event, as I told you from my first post, I do not care what your position may be, long or short. I have used similar strategies in SCH and other stocks, and by the way, contrary to your stated opinion, I do not consider "dishonorable"...
The mere fact of such consideration makes me distrust you, as you seem to be an individual that would do something contrary to your own considerations of the very same act... Hmm....
It does not matter how good a company is--if the stock is overpriced.
It would be easier just to stay quiet and profit from Schwab's decline, but not very honorable. As I pointed out to the DELL htread some time back, insider sales are a pretty good measure of the real value of a stock, and Schwab and his relatives have sold a good bit of SCH.
I haven't looked lately to see exactly what has happened, but that is what was going on.
Message 9917741
So in your own opinion, it is not "honorable" yet you do it...
As I said, I do not care, what you think of Schwab, but I repeat, your own statement makes you distrustful in my eyes.
(I apologize for having scared the world by saying that Schwab stock was worth about $35. I thought that if I told the truth that it is worth about $25, it would be too alarmist, so I tried to fudge a little. If I had it to do over again I would say that it was worth $37.50.)
Well, apologize all you want, as it is evident you do not know how to read either... (nor comprehend). Besides, I do not care.
So as the slow learner that you pretend to be...
I do not care what you think the value of SCH is in your opinion.
Clearly, as the market indicates, you are wrong. your perception of value is irrelevant, the market indicates otherwise. At this time, the market price of SCH seems to range between, $94 and $102 as of the last two or three days.
That is a fact. Your opinion is moonshine. I do not say so, the market says so...
Besides, who said that your valuation of $xx.xx scares "the world"...
This is what I said about your opinion of $xx.xx valuation:
Stocks go up and down, your suggestion of SCH at $35.00 is as valuable as the gold bugs yearning for a return to Gold at $800.00.
Once again.... (so you understand), what I object to is:
Simply that you are making the assumption you are going to scare the world, by implying that the reason why SCH is down is because "insiders" are bailing out... such are "scare tactics for morons"... go try the pennies for that.
<snip>
I do not mind that you are short, as you disclosed earlier, what I do object is your "fear mongering".
By that I mean, that you are implying that the "insiders" are selling, but yet, do not bring any specific statistics as to what amounts have been sold, nor what percentage of total holdings said sales represent, in spite of having been asked the question.
In stead, you answer with questions for fools, and apologies about irrelevant matters.
Steve was correct in indicating that it is a waste of time discussing anything with you.
If you think Schwab is going to $xx.xx then please be my guest express such opinion all day long... However I would suggest you bring in a little more data to back up your suggestions and insinuations.
Frankly, you are a waste of time. Best if you go to the bb threads...
Have a nice life.
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