robt.
you said:
if you would slow down a little, I think you can see the risk yourself. I
imagine the risk is related to how agressive you are in writing those covered call
options. For example, you can lose some of the profit you made on the stock's
appreciation in value. Lets say you purchased a stock at 20 that rose to 25. At 25,
instead of selling the stock, you wrote a covered call for 23 because of the premium
available on that option. Instead of dropping, the stock rose in value and you were
called out of your stock. Now, has the premium covered you loss on the 3 point
you did not collect on the stock's appreciation?
my response
this indicates why you lossed all your money in options if you ever did a option<g>?
that is another gobble-de-gook statement. It doesn't make sense and isnt' an option play at all.
you cannot do what you said.
drop this and get a book. I have stated the risk 100 better than you have. you are just wasting space til you study first.
this doesn't make sense<gGGGGGGGGGGGGGGGGGGGG>
YOU SAID:
Or lets make this even more interesting. Lets say the stock in one day dropped like
a rock. This is entirely possible since there has been well publicised stocks that
dropped quickly after their earnings announcement even though the company
exceeded street estimates. To compound this picture, since most of us work at an
office for a living, you did not hear about this until you arrived home. Now, you are
stuck owning a stock that sells for under the price you originally paid for it. Will the
income that you derived from the option write cover losses?? Will you end up
selling the stock at a loss?? Remember, what is being proposed here is buying on
margin. This will greatly magnify your losses in the stock you are invested in with this
type of situation.
my response:
our strategy says the cmpnay has to be above all absolutely sound.
you incurred the say risk on what herman and I covered call.
We do only a super quality stk. We also don't marry it.
so the drop deal doesn't cut it.
It fact with options we'll repair quickly and beat you dollar wise
with options and a stk that falls<g>
You actually incurred a greater risk becasue we read all the evidence on the stk before we leap into it<g>
Now to your volitily statement.
You should have seen the volitility of cpq, intc,usrx,msft,
dell,and on and on ...
can you please read the strategy and some good books.
you have never bot an option in your life and you are the exact person I indicate in my strategy to DO NOT DO OPTIONS<g>
Robt. please take this all in funn..okay<g>
It's a lessen to teach people to read the facts then buy . |
