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If you feel that the stock price is irrelevant, I'll take the other side
of your trades all day long. The conversion reversal would have kept
the puts and calls in direct relationship to one another. It looks to
me like the calls started in the money and then ran out. Half a truth
doesn't prove that you are right. Ira.
kohath wrote:
> It's irrelevant where the stock was then and where it is now. The
> point is,Selling always brings in a higher percentage than buying,
> always! Becauseof the melting value of options, but, with selling
> there is limited profit withunlimited risk!Kohath
> ----- Original Message -----
> From: Ira Tunik
> To: kohathCc: realtraders@xxxxxxxxxxxxxxxx: Friday, August 13, 1999
> 10:40 AMSubject: Re: Amzn Call/Put 100 Strike
> You left out one very important fact. Where was the stock at point
> one and at point 2 in your example. Why don't you post the stock chart
> too? Ira.
>
>> Charts of AMZN 100, Call, Put.Call went from $40 to $2.50, put went
>> from $1.50 to $10.50.As can be seen, same strike, same time frame.
>> This is whyselling is more profitable than buying, but, selling
>> involvesmuch higher risk. These two charts also show the
>> marketmakers have a distinct advantage because of the meltingvalue
>> of the options.Now if we had only sold 100 contracts of the YZZHT on
>> July 16th!Kohath
>
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If you feel that the stock price is irrelevant, I'll take the other side
of your trades all day long. The conversion reversal would
have kept the puts and calls in direct relationship to one another.
It looks to me like the calls started in the money and then ran out.
Half a truth doesn't prove that you are right. Ira.
<br>kohath wrote:
<blockquote TYPE=CITE> It's irrelevant where the stock was then and
where it is now. The point is,Selling always brings in a higher percentage
than buying, always! Becauseof the melting value of options, but,
with selling there is limited profit withunlimited risk!Kohath
<div style="FONT: 10pt arial">----- Original Message -----
<div style="BACKGROUND: #e4e4e4; font-color: black"><b>From:</b> <a href="mailto:ist@xxxxxx"; title="ist@xxxxxx">Ira
Tunik</a></div>
<b>To:</b> kohath<b>Cc:</b>
realtraders@xxxxxxxxxxxx<b>Sent:</b>
Friday, August 13, 1999 10:40 AM<b>Subject:</b> Re: Amzn Call/Put 100 Strike</div>
You left out one very important fact. Where was the stock at point
one and at point 2 in your example. Why don't you post the stock chart
too? Ira.
<blockquote TYPE="CITE"><style></style>
Charts of AMZN 100, Call, Put.Call
went from $40 to $2.50, put went from $1.50 to $10.50.As can be seen, same
strike, same time frame. This is whyselling is more profitable than
buying, but, selling involvesmuch higher risk. These two charts also
show the marketmakers have a distinct advantage because of the meltingvalue
of the options.Now if we had only sold 100 contracts of the YZZHT on July
16th!Kohath <img SRC="cid:part1.37B441F2.842B1BFD@xxxxxx"; ALT="" BORDER=0 ></blockquote>
</blockquote>
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