Originally Posted by
Pro Fessional
Not quite, Mr. Wizard. In fact he did just the opposite. He SOLD 8000 puts and bought 4000 calls. He makes money if the stock goes up and gets his head handed to him if it keeps going down.
Correct. It is a bet against the future. It is a positive bet, but a bet none the less.
I guess the word "against" gives the incorrect connotation. What you state is what I was inferring.
It is as you say, a bet that the price at the call point will be higher.
So thanks for the kind words.
