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Technology Stocks : Broadcom (BRCM)

BRCM 54.67

0.0%

Feb 9 4:00 PM EST

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To: PoetTrader who wrote (1935)	6/18/1999 6:08:00 PM
From: Farfel	Read Replies (2) of 6531

PoetTrader--- the 110 Call currently bids 15 1/8, it is down 1 1/8 today. What I said earlier was that I purchased the August 100 call, for 11 7/8 or $1187.50 plus commission----that is currently bidding ( I could sell it for) $2,050. When it hits $2375, I would have doubled my money----I already sold it and am now in the 110. But the principle still holds. Let me show you another call PoetTrader: a couple of months ago I purchased the August 60 Call on BRCM for about $1400; unfortunately, I was "shaken" out of my position when BRCM went down to around 47---but if I still had the call and didn't sell, I could sell that same call for $5250.00----in this case I would have already made 271% profit on my money----$5250 minus the initial $1400 and $54 dollars for the buy and sell commissions----AND I WOULD STILL HAVE UNTIL AUGUST 21 ON THE CALL----the includes the earnings report which should be good too. Add to this that options usually appreciate just from "volatility" as they approach the earnings reports---(the "delta" variable)----and the option would really appreciate as that date approached. That's how options work---in layman's terms; I hope I wasn't too obtuse.

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