For short-sellers, the upside is limited (the price can't fall below zero) but the downside is potentially enormous.In 1998, the near-collapse of a hedge fund, Long-Term Capital Management, threatened the stability of world financial markets for a while.
The downside is below-average fuel economy for this class: the XC60 is rated at 16 m.p.g. in town and 22 on the highway.
The lower-strike put purchasers are prepared to profit if Kroger shares drop 5.5% to trade below the breakeven point to the downside at $18.82 by expiration.
Thus, the trader is prepared to make money if Williams shares rally above the upper breakeven price of $22.00, or should shares trade below the breakeven point to the downside at $15.50, by expiration day in January 2011.
"A move above 4180 could set us up for a good start to next week, however, on the downside, a close below 4100 will target the 4050 area".
The trader starts to make money as long as shares trade below the average breakeven point to the downside at $62.20 by expiration.
True, that would carry them below equilibrium levels, but markets overshoot on the downside just as the oil market has done on the upside.
"The downside is that if an athlete is just below the level, you cannot act on it.
On the downside, a report for orders of durable goods came in below expectations.
