I went long BGZ @ 17.82 and I went Short of BGU @ 58.35
My latest longer term T expired today at 15:00 according to my spreadsheet.
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The Illusion of Choice
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What happens doesn't matter nearly as much as what you make it mean ... and
what you choose to do. For example, Dallas has been 100+ degrees almost all
sum...
2 comments:
David, what is the advantage of entering both positions? Would one do fine if you are bearish on the market?
Steve
Steve,
I executed both opening and closing positions within seconds of each other but the short position yielded a gross profit of 18 cents per share and the long position yielded a gross profit of 3 cents per share. These complex derivatives have waxing and waning premiums that can only be calculated by rocket scientists. By going long and short the opposite triple alpha derivatives I avoid the premium risk that I know is there but I cannot readily calculate.
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