Stocks & Commodities V. 23:3 (37, 71): Q&A by Don Bright

Stocks & Commodities V. 23:3 (37, 71): Q&A by Don Bright
Item# V23\C03\058QA.pdf
Availability: In Stock

Product Description

Stocks & Commodities V. 23:3 (37, 71): Q&A by Don Bright


Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (, an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:// Answers will be posted there, and selected questions will appear in a future issue of S&C.


Q: I understand that you were a trader on the options trading floor. Would you please explain what a conversion is? I have heard that they are risk free. How can that be?ózdreg

A: First off, the basics are pretty simple. If you buy stock, say at $53, and sell $50 strike price calls and buy $50 strike price puts, then you have a conversion. If the stock goes up or down $10 (or any major move), you will not make or lose any money. The price of the calls and puts together will work out to be around $3.00 ($50 strike price, plus the difference between $50 and $53). The call and put together are your synthetic short position, and the stock is your long position. . .

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at users can view the S&C Digital Edition in the subscriber's section on

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order