For the Wallstreet haters.

Discussion in 'Economics' started by KINGOFSHORTS, Apr 11, 2012.

  1. You got it wrong.

    Reagan was the Godfather of "Trickle Down Economics".

    Dubya never had an original thought before, during, or after his gig. That's why he kept Tricky Dick II around.

    Except for how to mispronounce "nuclear", along with most of the rest of the English language.

    :D
     
    #21     Apr 19, 2012
  2. [​IMG]
    [​IMG]
     
    #22     Apr 19, 2012
  3. Who's on first.

    What's on second.

    I don't know?

    THIRD BASE!!
     
    #23     Apr 19, 2012
  4.  
    #24     Apr 19, 2012
  5. does not compute.
     
    #25     Apr 19, 2012
  6. You should probably buy a new calculator then.
     
    #26     Apr 21, 2012
  7. i dont need to because you are wrong.
     
    #27     Apr 21, 2012
  8. Please explain how the writer of a covered call and the purchaser of that call can't both be profitable on that trade then.
     
    #28     Apr 21, 2012
  9. bellman

    bellman

    Owning the stock before writing the call does not affect the trade's overall profitability. Clearly.
     
    #29     Apr 21, 2012
  10. Because the positions are not opposing. It's zero-sum limited to the options. The two counter-parties are not trading fungible positions at a price, so it's an apples to oranges comparison. The writer of the covered call is short a synthetic put, while the purchaser of the call, is long a natural call.

    The outcome of the call-itself, it zero-sum (-sum with commissions).
     
    #30     Apr 21, 2012