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The other day I bought 2 puts in a currencies with 2 days left for about 75
dollars. I could see that the currency was set to take off, I went long the
futures and made 340 dollars profit by the time they expired. An I talking
apples and you oranges?
Prosper
----- Original Message -----
From: "Bob Fulks" <bfulks@xxxxxxxxxxxx>
To: "Prosper" <brente@xxxxxxxxxxxx>
Cc: <omega-list@xxxxxxxxxx>
Sent: Wednesday, July 04, 2001 5:16 PM
Subject: Re: Options - was:Globex2 in home
> At 4:08 PM -0600 7/4/01, Prosper wrote:
>
> >These positions are equal in every way? If the security goes down and you
> >have a long call only, you can only lose money period, you aren't going
to
> >make a dime as I see it. Yes there is no margin cost with just a long
> >option. If the margin is a problem don't trader the SP futures period.
The
> >comissions would be inconsequential. Am I missing something?
>
> Draw out the profit vs. price for a Call and for a Long position plus
> a Put. They will both look like this:
>
>
> /
> /
> /
> /
> P /
> r /
> o /
> f /
> i /
> t /
> /
> _____________________________________/
>
> Price
>
>
> This is the chart for a call, obviously. But an in-the-money Put
> increases in value as the price goes down while the Long position
> decreases in value resulting in no net change in your account as the
> price goes down - just as does the Call.
>
> Bob Fulks
>
>
>
>
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