Just conversation, not beating anyone down, especially you, so dont get me wrong. As relating to SFMI and it's price flux:
You stated = "You can't lose more than 100% of your gains, that was never stated that you would,"
Totally agree to your statement.
You stated = "but you can lose more than 100% of initial investment. The cost of the shares don't include the commission"
This one I disagree on, as initial investment includes the commission that you paid to purchase the shares along with the money you paid for the shares. Your total gains is the end value of the shares at time of sale, less money paid for the stock, less the commission paid for both the purchase and the sale of said shares.
You stated = "Therefore, if the stock becomes worthless you have lost 100% of your initial plus paid commission. Even though it might be 8 bucks, it's still a loss over and above the cost of the shares."
Your initial cost for the stocks has to include both the money paid for the stock, plus the commission associated to the purchase. As you cannot bypass the commission or else you would not get the shares. So yes, you do lose 100% of your invested money in the shares itself, if the shares are worthless, but also the 100% of the commission you paid to obtain those stocks. As both together is your initial cost to obtain the shares, you can not go over 100% of initial cost for an investment for a lost.
Let's not get into non-covered naked puts and calls....... or margins. If we do, this board will no longer hold any of the good DD that some here so selflessly give for free.
Dreaming of a Gold and Green X-mas!!!!!
