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.
Technology Stocks : Intel Corporation (INTC)
INTC 50.59+4.9%Feb 6 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: BOB who wrote (4911)11/7/1996 4:09:00 PM
From: Andrew Chow   of 186894
 
Hi BOB. I have never heard term #2. Sell Short means selling a stock you do not own. To avoid DK'ing on trade settlement, you clearing house/broker is supposed to borrow someonelse's shares to deliver. You then have an outstanding commitment to "repay" those borrowed shares. You also pay interest costs for your borrowing. But if the stock goes down in price, you can "repay" your borrowing for less than you received initially for the sale. Hence short sales are typically targeted towards stocks you think will decline in value.

Covered Calls means writing call options on a stock you own. Typically the strike price on the call is set higher than the current market price. The strategy is sometimes employed by those who desire additional "income" from their stock holdings.

As a retail investor, you do not need to employ either of these strategies to be successful. Personally IMO, you are better off avoiding both.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News