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Author: SoMch2Knw Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36696  
Subject: Plain language please Date: 4/3/2013 12:01 PM
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Hey Doug,

What does this mean in english...

The Motley Fool owns shares of 3D Systems and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems.

...DDD feels expensive to me with a near $3B marketcap ($31 pps), but it is a growth stock, so who knows:

http://stockcharts.com/h-sc/ui?s=DDD&p=D&b=5&g=0...

Is the Fools option position downside protection thru Jan 2014 given the underlying Long position? A means to pocket some premium (return) while waiting for the next leg up next year? Ultimately bullish?

Or is it an attempt to increase the current Long position at anytime between now and Jan 2014 in expectation of a bullish rally in the short-term?

Or is it a more complicated options stance that can benefit either way? Or maintain neutrality?

One of these days this will be my second language, but for now, reading "Short" w/Call or "Short" w/Put positions still confuses me. And together, forget about it (Lol)


Tye, aka SM2K
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Author: alcear Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 36570 of 36696
Subject: Re: Plain language please Date: 4/4/2013 10:08 AM
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long stock short calls & puts. nice conversion. either option gets exercised the position closes w/a nice profit

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