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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST

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To: DiViT who wrote (1934)6/18/1999 6:22:00 PM
From: Farfel   of 6531
 
Obviously, this presupposes BRCM's exceeding the consensus estimate, but then I actually presumed people on these boards were intelligent enough to make that assumption. I didn't think that every single variable had to be spelled out.

Insurance isn't my business, making money in options on BRCM is my hobby; and although I don't have a crystal ball; I have had decent success with them.

My primary point for those not trying to be trite, was that in taking an options position such as a 110 call on BRCM would put at risk less capital--to wit: about $1600 with the possibility of returning up to and exceeding 100 percent on that same $1600. If BRCM goes up as it did after the last earnings report----it would be a "given"----what did it spike in January----about 30 points in 6 days----look at the charts.

But I will end with the statement included in every prospectus----past performance doesn't guarantee future success.

Now, I know why they include that in every prospectus, because there may be a few "braindead" people who can't move through the "model" very well and need to be slapped upside the head with a reminder that there are no "guarantees" in the market.

I'm sorry I misjudged this group; I actually thought you all had the acumen to handle the examples.
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