The Critical Investing Workshop Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : The Critical Investing Workshop

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LLCF who wrote (19962)	5/24/2000 11:56:00 AM
From: Clappy	Read Replies (2) of 35685

This is not true... it means he's borrowed to own stock, and he decides no to do this anymore, thats all... it means incase they DO go lower he wont have to buy back his calls [more comish, great] and THEN sell at even lower prices. IT IS PRUDENT. Anything can happen in the markets, if Q comes out with some bad royalty news and opens @ $40 only one strategy worked. If he covered nearly 100% of his holdings by writing calls stretched out over various time frames, wouldn't that also protect him? Can his margined shares be touched if they are protected by covering them. If QCOM goes out of business, he loses everything anyway. The odds are certainly better that QCOM remains the Gorilla it is destined to be. IMHO this market correction has a limited life. Fundamentally, nothing has changed with QCOM and the other companies mentioned. Eventually things will begin to rise again, like it has. Buying time appears to help this person remove his margin debt when he wants to. Rather than, when he has to. Again, I understand your position, that remaining off margin is the best thing for an investor to do. However, doing it at a better price than this low point may be more suitable. -Clappy

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next