question..

[lavak3]

This is what the "rulebook" for falkin 5 says about options:

Though not necessarily considered "cheating", to keep contestants from taking advantage of buying multiple option contracts and avoiding the rules set forth in our competitions, a new rule has been created effective as soon as Falkin V begins. For contestants to maintain prize elgibility, they are only allowed to buy ONE type of contract for a given stock at a time. Furthermore, this position must not exceed the option diversification settings set forth by the FIO which will be 10% for Falkin V. Example: buying 10 $40 August Calls representing $10,000 of User A's starting $100,000 portfolio is allowed. buying 5 $40 August Calls twice to attain $10,000 in total for that position is also allowed. Buying 5 $40 August Calls and 7 $45 August Calls is NOT allowed. Each user may only have up to 10% of their portfolio in ONE type of contract at a time.

It says the diversification rule for options is .10, however the diversification rule on falkin 5 competition is .50.....

I recently traded something close to .50... did I "cheat"?

[WallStGolfer31]

according to the rules, it appears so.......

[Stocktrading101]

hey there lavak,

The option rule we created has beena wild one for Falkin V thus far. What we are trying to do is keep contestants from putting their whole portfolio into one stock (option wise) and then going bust. If you did use 50% to buy an option dont worry about it for the first time, just try and stay around the 10% rule. In Falkin VI options wont even be allowed so we dont run into this problem again.