Broadcom (BRCM) Message Board

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Technology Stocks : Broadcom (BRCM)

BRCM 54.67

0.0%

Feb 9 4:00 PM EST

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To: Farfel who wrote (2151)	7/1/1999 1:14:00 AM
From: BrooklynDave	of 6531

You Said "-you guys seem to forget that if the underlying issue starts to plummet, you either "eat the loss" or buy back the calls at a much higher premium than you originally paid" Isn't true if the stock were to plummet, the calls you sold would be less than the money you collected for them while your losses would be in the equity you own. Did you mean if the stock price were to RISE than you would be stuck-your options being to 'buy back your calls at a price higher than you sold them for' or wait it out and have the stock 'called away from you at the strike price(while keeping the premium from the call you sold. The danger in this, of course, is the stock rising then falling and your screwed. I'm new to this, JoeJ, and any help by you I would appreciate. dave

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