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Non-Tech : Any info about Iomega (IOM)?
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To: xiaxia who wrote (7673)9/26/1996 3:42:00 PM
From: chester lee   of 58324
 
<<Covered calls may hurt you as well. I sold covered calls when IOMG
was about 17 (split adjusted) and watched it went up to 55 without
being able to take any profit. What a mistake!>>

Them is the risk. You can always buy the options back and sell the stock to lock in the original target. Or you can buy back the options and and hold on to the stock for teh ride up to 55. But how would you know where the stock is going. If you knew it was going to 55, why did you write the options. If you knew it was going to 55, why did you buy the stock? You would have maximized your money buying just the options. My point is... There is always risk, buy writing covered options eliminates some of the DOWNSIDE risk.
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