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  Help on this
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Gio-PC  
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 More options Jun 2 2008, 2:56 pm
From: Gio-PC <francisco.maz...@gmail.com>
Date: Mon, 2 Jun 2008 11:56:29 -0700 (PDT)
Local: Mon, Jun 2 2008 2:56 pm
Subject: Help on this
I am just curious on the following.

 Lets say you had a time machine (DeLorean) and could go back in time.

 You had $1,000,000 cash and with 2:1 margin you would have a total of
$2,000,000 to invest.

 Now, lets say you SHORTED BSC for $153.95 totalling 12991 shares.

 You waited some time, and BOUGHT BACK the 12991 shares for $2.84 =
$36,897.28.

 After you return the $1,000,000 you got from margin, what was your
net profit for doing this short? -- not counting interest you paid for
it, or trade fees.


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rci...@gmail.com  
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 More options Jun 2 2008, 3:35 pm
From: rci...@gmail.com
Date: Mon, 2 Jun 2008 12:35:49 -0700 (PDT)
Local: Mon, Jun 2 2008 3:35 pm
Subject: Re: Help on this
Profit = 963,102.72

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otmanemadr...@gmail.com  
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 More options Jun 2 2008, 5:39 pm
From: otmanemadr...@gmail.com
Date: Mon, 2 Jun 2008 14:39:08 -0700 (PDT)
Local: Mon, Jun 2 2008 5:39 pm
Subject: Re: Help on this
153.95 - 2.84 = 151.11
151.11 x 12991 = 1,963,070.01
Profit = $963,070.01

Here's something interesting:

Somebody actually bought 50,000 puts (k=$35) against BSC when it was
still trading at around $40 (OTM). I think the article said that the
puts were selling at $0.25.

Your investment cost: (Note: each put contract gives you the right to
sell 100 shares @ $35)
50,000 x 100 x 0.25 = $1,250,000

Your return if you exercise at...say your $2.84 quoted above:

(35-2.84) x 50,000 x 100 = $160,800,000

So you turned $1,250,000 into $160,800,000, and made $159,550,000 or
12764%. You gotta love leverage!

Long story short, if I went back in time, I wouldn't short sell BSC; I
would buy puts, and lots of 'em.


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jechterl...@gmail.com  
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(1 user)  More options Jun 2 2008, 5:37 pm
From: jechterl...@gmail.com
Date: Mon, 2 Jun 2008 14:37:52 -0700 (PDT)
Local: Mon, Jun 2 2008 5:37 pm
Subject: Re: Help on this
Profit = $ 1,963,070

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