Comments on: An Advanced Investment Strategy: “The Option Straddle” http://www.wheredoesallmymoneygo.com/an-advanced-investment-strategy-the-option-straddle/ A Canadian Personal Finance Blog Sun, 14 Mar 2010 09:30:52 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Acorn http://www.wheredoesallmymoneygo.com/an-advanced-investment-strategy-the-option-straddle/comment-page-1/#comment-6550 Acorn Thu, 20 Nov 2008 13:58:18 +0000 http://symbiantcapital.com/2007/10/12/an-advanced-investment-strategy-the-option-straddle/#comment-6550 Hi Preet, About break-even point calculation… To buy the options we spent $10 of the AFTER tax money. To estimate a real break-even point we have to take in account taxes that will be paid. So, the “real” brake even point is when ABC moves more than $15 in either direction. Am I right? If yes, does it mean that an investor who is in a higher tax bracket has to be more aggressive (or may be more caution) by definition? Hi Preet,

About break-even point calculation… To buy the options we spent $10 of the AFTER tax money. To estimate a real break-even point we have to take in account taxes that will be paid. So, the “real” brake even point is when ABC moves more than $15 in either direction. Am I right? If yes, does it mean that an investor who is in a higher tax bracket has to be more aggressive (or may be more caution) by definition?

]]> By: BrandonA http://www.wheredoesallmymoneygo.com/an-advanced-investment-strategy-the-option-straddle/comment-page-1/#comment-624 BrandonA Thu, 29 Nov 2007 11:00:08 +0000 http://symbiantcapital.com/2007/10/12/an-advanced-investment-strategy-the-option-straddle/#comment-624 <p>Nice post, this explains to me what tax directors at my work couldn't explain to me. I'll be putting this new knowledge to work! Thanks</p> Nice post, this explains to me what tax directors at my work couldn’t explain to me. I’ll be putting this new knowledge to work! Thanks

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