SI
SI
discoversearch

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.
Gold/Mining/Energy : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Big Dog who wrote (19757)4/20/1998 6:24:00 PM
From: marc chatman  Read Replies (1) of 95453
 
B.D., you can sell (or write) naked calls (i.e., you don't own the underlying stock), if your brokerage account permits. It is very risky, unlike the covered calls which you have been writing. If the stock runs north, the buyer of the calls will exercise them at the strike price, and the seller must then buy the stock at the higher price and transfer it to the buyer. In that sense, it is a similar to shorting the stock.

What Beebs proposes is to write calls for next month; he already holds calls for September. So, he figures, if the stock runs up, he won't get killed on the May calls he's written because his September calls will gain value. I guess he figures PFE will not gain much in the next month, or will pull back so that he can buy back his May calls for less than he sold them.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News