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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by miner49er62on May 23, 2011 3:03pm
247 Views
Post# 18614677

RE: RE: Short selling explanationn

RE: RE: Short selling explanationnYou could always sell a call against your share position which guarantees you a price at expiry or exercise but limits your cap gain to the strike price. I think you would be better protected, if that was your goal, to straddle with a call and a put. That gives you unlimited upside  and limited downside, regardless of  which direction the stock price goes. The loss side option is limited to only what you paid for it. The risk would be stagnation in a narrow trading range for the duration of the options period which would lose you your option costs.The problem and it is a big one, is there is very little open interest in the options on YLO which means it is not a very liquid market. I prefer to place my bet and collect the dividend on the shares I own. I am no options strategist but the little I know gives me that opinion fwiw. The cap gains will eventually come IMO.
Bullboard Posts