MK: Very profitable + safe - yet "extreme risk"?

Matthew:



What do you think about trades like these? They are widely-used and accepted (spreads and "covered" calls), yet get slammed @ C2 as being "Extreme Risk"?



Gilbert



BTO 250 QQQHY QQQQ Aug07 51 call

0.32 7/24/07 15:18

0 0.05 (16:10:02t)

($7,999) $0 $0 ($6,750)



Extreme





($6,750) Close

Reverse



STO 250 QQQHX QQQQ Aug07 50 call

0.67 7/24/07 15:19

0 0.18 (16:08:44t)

$16,750 $25,000 $0 ($3,250)



V.High





$12,250 Close

Reverse