The capitalist who sells a “put” or a “call” performs precisely the same function as an insurer. He receives an equivalent therefor, and it is a means by which he can turn the securities in his hands with an intermediate profit, without serious risk, except that in the case of a “call” he may be compelled to change the character of his securities, or replace the securities which he has called from him, and in the case of a “put” he may be compelled to re-acquire the securities that he has parted with; but, distributed over a very large mass, and through different classes, of securities, these “calls” and “puts” will balance themselves and leave, if intelligently pursued, a resultant profit to the operator in the “puts” and “calls,” with a prevention of disaster to the purchaser of the privileges, as against excessive fluctuations in the market. Respectfully yours, SIMON STERNE. * * * * * H. W. ROSENBAUM, 60 EXCHANGE PLACE, NEW YORK, Broker and Dealer in Options on Bonds and Stocks Besides the usual Options (Puts, Calls and Spreads) with prices fixed at a certain distance from the market price of the Stocks or Bonds, I devote especial attention to the negotiation of Options (Puts, Calls and Straddles), with price fixed at the current market price of the Stocks, etc., which latter class of Options my experience has proven to be the most advantageous and ultimately cheapest. I will also contract _Insurances against loss_ on purchases or short sales of Stocks or Bonds, made through me, during periods ranging from one week to sixty days, and in quantities of from 100 shares ($10,000 Bonds), upwards. The Premiums to be paid for such Insurance range from $112.50 per 100 shares upwards, according to length of time and character of security, and cover the whole loss which the speculator may incur on this transaction. Circulars, Rates and Information furnished on application. H. W. ROSENBAUM, 60 Exchange Place, New York. End of the Project Gutenberg EBook of The Theory of Stock Exchange Speculation, by Arthur Crump