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Thanks Ira, yes I see that, although time could be on your side if
volatility declined, much higher prices would kill you.
--- In realtraders@xxxxxxxxxxxxxxx, "Ira" <mr.ira@xxxx> wrote:
> What you have done is create a situation of limited profit and
unlimited
> risk. Not to hard to figure. Add the price of the put you sell to
the
> strike price and everything above that is loss point for point with
a rise
> in the stock or future price.
> ----- Original Message -----
> From: "prosper1000" <prosper1000@xxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Thursday, March 27, 2003 6:23 PM
> Subject: Re: [RT] What's wrong with the stratagie in #21907?/Ray et
al
>
>
> > Here is is Ray,
> >
> > It should have been sell an at the money put and sell the
underlying.
> > I want to know if I am clear about what can go wrong if the price
> > goes up, stays about the same, or goes down. If the price goes
down
> > the the loss on the option and the gain on the underlying should
> > cancel out. If it goes up, you maintain the value of the sold put,
> > but you lose on the sell of the underlying. I guess that a stop,
> > would stop the loss on the underlying, but then your put would be
> > naked agian.
> >
> > Thanks again.
> >
> > Prosper
> >
> >
> > --- In realtraders@xxxxxxxxxxxxxxx, "Ray Raffurty"
<r.raffurty@xxxx>
> > wrote:
> > > Hi Prosper,
> > >
> > > No I didn't get the second post. I've noticed that happens
> > sometimes with Real Traders and/or Yahoo. What did it say?
> > >
> > > Good luck and good trading,
> > >
> > > Ray Raffurty
> > >
> > > ----- Original Message -----
> > > From: prosper1000
> > > To: realtraders@xxxxxxxxxxxxxxx
> > > Sent: Thursday, March 27, 2003 1:24 PM
> > > Subject: Re: [RT] What's wrong with the stratagie in
#21907?/Ray
> > et al
> > >
> > >
> > > Hi Ray,
> > >
> > > Did you read message #21907? I got the origionaly stratagy in
my
> > > first post wrong. I redefined it in post #21907. Sorry about
> > that. I
> > > would still like to hear what you and others have to say about
> > it.
> > > Thanks
> > >
> > > Prosper
> > >
> > > --- In realtraders@xxxxxxxxxxxxxxx, "Ray Raffurty"
> > <r.raffurty@xxxx>
> > > wrote:
> > > > Hi Prosper,
> > > >
> > > > There is nothing wrong with any strategy as long as you
> > understand
> > > the possible risks and rewards:
> > >
> > >
> > >
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