SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Ampex Corp: Digital Storage
AMPX 9.475+2.5%Jan 9 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Stephen M. DeMoss who wrote (2946)6/2/1997 11:59:00 PM
From: Joseph A. Aboaf   of 3256
 
Thanks Stephen for answering #2945! I do agree with you. It is known (?) - I have never seen any study however - that calls buying is a loosing proposition in spite of the fact that it is sold "as your loss is limited". However, let me add that in the example of AXC, it is difficult to do because there are no calls between 7 1/2 and 10: this is 25% difference. Better done with a stock between $20 and 30 where you have a lot more calls to sell. Also, selling calls is fine; what can be done at the same time is to buy calls at higher strike prices if the stock is going up; this could be rewarding if the stock keeps going up...the risk is there obviously.
Joe
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext