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Here is the rub, if an investor turned out to be right, he would have made about 5% while risking about 7% by buying put or call options.
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"They can buy, sell, share or put a call virtually to any stock, bond or currency in the world, they can do it from their basement, and they can do it with information that in the past brokers would only give to their clients for a charge, " says Thomas L Friedman, of the New York Times, author of a book on globalisation.
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You construct this strategy by purchasing one out-of-the-money call or put and selling two deeper out-of-the-money calls or puts in the same expiration month.
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