What is the alternative if the call has too much premium

Discussion in 'Options' started by emk662, Mar 4, 2007.

  1. semiopen

    semiopen

    Buying the stock and buying a put is equivalent to buying a call.

    Selling a put as previously suggested is reasonable but not the same as buying a call. Since the hedge ratio of a put and call total 1, if you feel the call has too much premium, then most likely you would feel the put also has too much premium and therefore you should sell it.

    I suspect the bottom line is you need more trading capital.
     
    #11     Mar 6, 2007