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: Keith A Walker who wrote (2132)	6/30/1999 5:56:00 PM
From: Farfel	Read Replies (3) of 6531

Covered Calls on Broadcom are really a bad idea; as William O'Neill comments you are trading away the upside potential of the stock for a pittance. Take today: if you had bought the stock yesterday at its high 126, you still would have made 1800 dollars in 1 day-----and if you had bought the stock last week at 108, you would have just traded 3600 profit for 1100 in premium. That doesn't sound like a great deal to me----and that's exactly why O'Neill thought that covered call writing (the most conservative of option strategies)was really a bad idea and counterproductive.

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