Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: KeepItSimple who wrote (83888)	11/10/1999 3:09:00 PM
From: craig crawford	Read Replies (1) \| Respond to of 164684

I think that 80% figure is misleading. What about people that buy a bunch of way out of the money calls for cheap? A very high percentage of those will go out worthless, but one winner can make up for 10 losers. So maybe 90% of the far out of the money options expire worthless, but people still buy them because the one winner makes up for all the losers. What about people that buy really cheap far out of the money puts/calls as cheap insurance on their holdings? Many reasons why 80% figure seems so high. The 80% figure you cite doesn't mean writing covered calls is any better of a strategy than buying calls. I think it's probably worse...