Search results

Had I read your post it would have saved me a post.

You are assuming that that 10% profit margin on sales of 100 means that there is a fixed percent profit/dollar. You would thus assume that had the same business had only $1 in sales, it therefore had a dime profit. Not so ... in all likelihood, the business is losing $89. What you are...

If you run a business where you were responsible for the bottom line, or if you give it some thought, you realize that it is entirely possible, and in fact common that small incremental changes in revenue can have large impacts on profitability. A business with profits of $10 on $100 in sales...

Way over my head to be sure ...

As an options trader, I would think it prudent always to be on the hunt for the baby black swan, right?

Have you also failed at trading common stocks? Why not try to develop at least a slight directional edge trading the underlying before heading straight into the option pit?