Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 175.21

-2.3%

2:16 PM EST

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To: Jill who wrote (49842)	11/14/1999 8:22:00 AM
From: Wyätt Gwyön	Read Replies (1) of 152472

Covered calls/short puts functionally the same? Depends what "functionally" is supposed to mean. (Obviously, you can end up with stock at expiry in one case but not the other, so in this sense it is hard to call those two situations the same. Thus different people may find one approach more useful than the other.) But they have the same profit/loss curves relative to underlying. That is why people try to equate them. It is the curves that are the same; not the actions themselves. It is a good idea, I think, to understand the sameness of the curves. BTW, the funds received for a short position would be "premiums", not commissions.

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