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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?


To: Ira Player who wrote (23225)10/13/1999 8:48:00 AM
From: esl  Read Replies (2) | Respond to of 25960
 
Cover call is useful when people believe the underlying stock price will remain unchanged over the short-term. I don't think CYMI will fit in this situation. The cover call example you illustrated will have a limited profit at 42 1/8. But still facing the same downside risk(betteroff $2 1/8) that CYMI shareholders have.