a sad day, page-38

newjo im not betting on either side. as long as tim does not go higher than 50 c im winning.

let me share with u my plan, i have 10 000 of timpb at avrg of 24 c ($2 400) and i shorted 40 000 of tim at avrg of 9 cents.

let say tim goes up to 35 c at the end of september, i would lose (0.35-0.09) * 40 000, which is $10 400 on my shorts. however, when i convert each of my timpb into 4 tim shares i would get 400 000 tim shares at 35 c each as well which is $14 000. subtract it with my initial capital of $2 400, i still get $11 600. i still earn $1 200 from this deal.

and if tim goes down, if timpb get return of capital below $2, tim would get nothing. lets say worst case scenario in which timpb is not to receive anything when tim winds up. i lose $2 400 on my timpb. however, i profit 0.09 * 40 000, which $3 600 on my short. i still earn $1 200.

i win either way. questions?