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march calls
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Markwright
Posted 8/27/2010 22:00 (#1335375 - in reply to #1335357)
Subject: Re:No risk in buying a put Tara, just


New Mexico
in case one might be wrong the market, no margin calls, let em expire and ride the deal up.

buying a put or buying a call are both on naked positions ie not subject to margin calls.

Your only loss risk is what you paid for your position.

NICE thing about buying puts is generally one can buy em down below the current money aways for a cent or 5....acts as a floor for you product, thus cheap insurance and you and product get to collect the open top up if the deal runs up.

Insures your bottom, and leaves the moon and the sky open for an Up.
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