Wall Street Breakfast: Must-Know News [View article]
axel...just a quick comment, Warren Buffet just made a deal where he has as one part the option to buy $5 billion of common shares of Goldman Sachs at $115. I guess he's been taking classes...
Honestly I know he made that comment but the context was probably in reference to the CDO's etc.
As long as ur long options the only risk u run is the premium u paid. That gives them less risk or at least a known fixed maximum risk before u enter a position.
Naked short options pose a high risk where u can loss more than u have in ur account.
People who want to short options can use credit spreads to protect their positions and risk.
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axel...just a quick comment, Warren Buffet just made a deal where he has as one part the option to buy $5 billion of common shares of Goldman Sachs at $115. I guess he's been taking classes...
Sep 26 13:17 pm
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All Comments by dtrader »Wall Street Breakfast: Must-Know News [View article]
Honestly I know he made that comment but the context was probably in reference to the CDO's etc.
As long as ur long options the only risk u run is the premium u paid. That gives them less risk or at least a known fixed maximum risk before u enter a position.
Naked short options pose a high risk where u can loss more than u have in ur account.
People who want to short options can use credit spreads to protect their positions and risk.