Dale4567

2009: Rambus' Year to Shine

Excellent article. Rambus will make everyone forget all about QCOM.

Intuitive Surgical: Operating with Options

As I said, "cash-on-cash return" doesn't mean anything. It is totally pointless, which is why no one ever uses it (unless they are trying to make a trade sound better than it really is). For example, someone could put on a diagonal spread for zero debit and sell it later for $1. In this case, the "cash-on-cash" return would be infinite. Do you see how ridiculous that sounds?

You should have given readers the potential return based on risk, not cash outlay, which is meaningless when dealing with short options.

Intuitive Surgical: Operating with Options

You should be careful because your claims on the potential returns is very misleading to people who may not understand options. "Cash-on-cash returns" and "cash outlay" are completely meaningless. If you analyze this position from a return-on-risk, it will not look nearly so attractive.