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TETRA Technologies, Inc. Message Board

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  • mikebert mikebert Jul 12, 1999 1:24 PM Flag

    so...

    What did the puts you bought cost?

    If the
    stock closes above 160 on Friday the stock gets called,
    this I understand. If this happens you would be better
    off selling (short if you want to keep the stock) at
    174.

    If the stock sells between 150 and 160 the puts
    expire worthless, yes? In this case you might be better
    off with the options, it depends on what the puts
    cost. What do you do then, sell new 150 calls and buy
    puts at 140?

    If the stock is below 150 on
    Friday, then what do you do? Sell the puts and keep the
    stock? Sell both? Wouldn't you be better off selling
    (short if you want to keep the stock) at 174 here
    too?

    I thought the main attraction of options was
    leverage.
    It doesn't make sense that you can accomplish
    anything different with options + the underlying stock
    that you couldn't simply by buying and selling (short)
    the stock itself. Options make trading more
    complicated, and if used by themselves more leveraged.

 
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