[ga] Re: WLS and bares
In a message dated 1/11/2002 10:31:05 AM Central Standard Time, patrick@quad.net.au writes: Bear Trading. Normally people think in terms of buying stocks (aka shares) on Not exactly true Patrick, but close. In order for a person to sell shares they do not own, they must borrow stock from someone or the brokerage firm ... which is a "short sale". If they own the stock, then they can "sell against the box". In the options markets you can either buy or sell a put or buy or sell a call (or spreads and straddles). If you sell a put, it is called a "naked" and can be quite dangerous and most firms will require the full cash price of the stock to be in your account. The person selling is referred to as a "bear", but the actual term is "trading bare"., ie bare of stocks or naked. If you sell a call and you own the underlying stock, then it is called "writing". Any option can be exercised at the holder's discretion. jess |