HSX Forum

Playing & Trading Strategy

you mean if u buy max of whp put not call right?

Posted by: kensanity on Oct 01, 18:54 in response to Chimaera81's post one last question

if you short the call option then it will cash out at 0 so you will make 1,35 off of each share. (you are going to cover all the shares at $0 so essentially its free)

However you would lose money on the put option. [10-8-2,39=-0.39]

That is why u have to determine how much change you are willing to deal with. Essentially, most of the options are better to buy when they intially hit the market, as that way your variable change isn't so high (if you bought it at 2, you would break even). I might be wrong about this put option but i'm pretty sure i'm not. But if i am please someone correct me. 

 





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