|
PureBytes Links
Trading Reference Links
|
----- Original Message -----
From: <MikeSuesserott@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxx>
Sent: Monday, January 22, 2001 9:14 AM
Subject: AW: [RT] conservative?
>
> The other point I wanted to bring up - why use a synthetic position at
all?
> Suppose your position size was
> long 1000 shares at 52 1/2,
> short 10 May 55 calls at 13,
> long 10 Feb 50 puts at 9 1/2,
> resulting in a capital outlay of nearly $ 50,000. This capital will not be
> available for trading until you unwind your position. Why not use this
> totally equivalent position:
> short 10 May 55 calls,
> long 10 Feb 50 calls,
> which might be done at nearly even money (if you entered this position
now,
> you could even obtain a credit). The capital requirement would be
determined
> by the SPAN margin for the position, as of today some $ 23,000 minus the
> credit of about $ 4,000 which means about $19,000 of your capital bound in
> this trade, as compared to almost $ 50,000 for the synthetic variant.
>
> Regards,
>
> Michael Suesserott
Dear Michael,
The day after you enter into your uncovered short call position, the
previous boyfriend of your current girl annanced takeover of the company at
$1000 per share. What are you going to do then?
Scared Alex.
>
>
>
> -----Ursprungliche Nachricht-----
> Von: proffittak@xxxxxxx [mailto:proffittak@xxxxxxx]
> Gesendet: Friday, January 19, 2001 18:02
> An: realtraders@xxxxxxxxxxx
> Betreff: [RT] conservative?
>
>
> hello
>
>
> bought itwo @52 !/2
> sold may 55@xx
>
> bought feb 50put@xxx
>
> on Feb 15 will buy may/50 put
> buy back the May 55 call
> and sell the July calls
> comments welcome
> annual income net 40%
> if stck goes up you make money
> if it stays the same you collect calls income
> if it goes down you get the put profit plus collect the call money
> no loose situation
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxx
|