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Re: Stockman1010101 post# 24627

Wednesday, 04/10/2019 4:23:36 PM

Wednesday, April 10, 2019 4:23:36 PM

Post# of 26535
There selling the puts to the purchased calls as well the calls to the purchased puts. The cost of entry is the same regardless of the strike price. The capital cost becomes a fraction of the revenue. It’s a different revenue source created by trading activities that is used to compensate credit given to there customers. The problem is the tax cost for every dollar of credit issued becomes staggering.

The risk is huge but with that the rewards could be gigantic. It killed Toys of Us that devastated many a Toy manufacture business. Ends up leaving a big hole.

Watch the numbers of those associated in the purchase of the companies products not only the numbers of the company your interested.

If pollution starts to seep into your favorite fishing hole from surrounding fields best maybe to be watching the farmer to give you a guilded look into your future catch.

Your customer is your bottom line not your assembly line of product and services. Cash flow is crucial.