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--- Bob Fulks <bfulks@xxxxxxxxxxxx> wrote:
> At 10:51 PM +0200 7/4/01, MikeSuesserott wrote:
>
> >It's true! Usually it is neither desirable nor
> advisable to go long an S&P
> >futures contract and hedge this exposure by
> purchasing an S&P Put option.
> >Why? Because the very same market position can be
> established by simply
> >buying an S&P Call.
> >
> >These two positions are totally equivalent,
> including delta, gamma, time
> >decay and all. And yet, in the first case S&P
As the risk of prolonging this thread I may as well
raise a few points I think you guys could have missed:
1: options scale off the vix. So they CAN roller
coaster all over the place independently of the
futures(time decay is way against long positions
though). Think warnings season, etc.
2: Taxes. The trusts nail you with a normal gain if
you make $$.
3: the spreads and commissions on these options are so
huge it is not even worth thinking about except on > 1
day hold times.
My $0.02.
Jack
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