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It's still a phantom short. I mean with a regular short you usually buy call protection anyway. :)

Not quite. You're more mentally committed to entering the position with a phantom short. Another part of the Phantom short is buying a call or a spread so you lock in the current price in case it rallies, but still have room to continue profiting to the downside like a short. So no upside...

You are not understanding what a phantom short is. Phantom shorting is deciding you want to enter a long position, but not entering it because you expect more downside. You have just shorted the position with your mind...thus a phantom short. It will act exactly the same as a regular short, only...

Another benefit versus shorting. If you actually shorted the position it would be taxable...but if you phantom short it with your mind its un-taxable lol. Benefits of a phantom short compared to an actual short No fees. No commission. No premium. (puts) No margin requirement. No theta decay...

Your capital stays the same. How is that risk? Plus you can always buy a call to protect from upside just as you would if you had a regular short position. Get D or P over here and run a synthetic comparison!

I should have legged in on the short call...could have gotten .19 eod.

Yeah EW lol. I put on a BITO 19/20 SEP20 spread this morning @ .07 currently worth .13.

Technically you can and it will perform the same as holding a short position minus the upside risk. :) Example: You wish to buy 100k worth of abc stock trading at $10. You could by 10,000 shares. If price drops to $8 you can now buy 10,000 shares with only $80,000. You have just (phantom)...

But you are making profits as the price drops... Because the more it drops, the more shares you're going to be able to purchase. It's exactly the same as holding a short position... Without any upside risk. I call it the Phantom short. :)

"Academics as a rule make terrible trades" 10:05 I've always said sometimes you can be too smart to make money in stocks. :) Anyway all this talk about options eliminating risk...how do options eliminate risk? Buying an option you are risking the premium. Selling an option you are risking...

Cash! Holding cash waiting for an entry is essentially a synthetic put/short position since you are making money as the stock drops...but it carries no risk to capital...no fees, no commission, no time decay.

Don't act like you're choosing not to invest in Bitcoin LOL. You missed the boat buddy. Bitcoin's gone up like how many thousands of percent LOL. It was literally the same price of gold like 5 years ago. How are they looking now?

Also, if you don't put it anywhere, inflation is going to eat away at it. Really there's no choice but to put your money in some kind of risk unless you're going to buy a government bond.

Yeah and at a pretty good rate.

I could also argue your money is lost if you don't put it in a stock that goes up.

Yes one must avoid paying extrinsic value at all costs....but I'm looking at the DEC20 expiry... Maybe getting one month out and rolling would be better.

Why can't I just short 999 shares so it's not boxing?

I needed beer money. Yes.

BITO price: $17.70 1000 shares Scenario #1 Contracts: 10 Strike price:12 Price: .65 (bid is .32) Cost: $650 At expiry Future stock price: $12 Future option price: .13 Value: $130 That's brutal! You lost 5k on the long position, and lost -$520 on the puts. Scenario #2 If I compare to...

Sorry I missed this...I was out in my (2008) Lambo. Fall is fast approaching! :)