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In a message dated 98-01-05 04:34:43 EST, Killian.Smith@xxxxxxxxxxxxxxx
writes:
> If you trade deep in the money options, your risk profile essentially
> mirors a cash position. Is this what you want and if so why use options ?
>
Two Reasons. Leverage, and absolute risk. If the stock was taken out and
shot(CNBC terminalogy), option position limits absolute loss. Same thing on
a short position, where the stock took off and ran to the moon.
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