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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Quaddad who wrote (10734)	11/23/1997 1:11:00 PM
From: Glenn D. Rudolph	Read Replies (3) \| Respond to of 45548

Carmine, Here is an example of what I think he was trying to point out. Say stock abc is trading at $70/sh and you write a $75 covered call. You collect the cash from the call and then the stock drops from $70 to $35 prior to expiration. Yes you still own the stock and yes you collected the cash from the call writing, but you also took a 50% hit from when the stock declined. That's the risk I beleive he was trying to point out. Quaddad, Tnak you for helping with the explanation. Your example would be identical if one wrote strike $75 naked puts and the stock fell to $35. I owe an apology to Carmine. It is my busy time of year and I felt rushed so I believe my answers were a bit rushed. Carmine, I am sorry about my prior tone. No anger intended. Just frustration with the lack of time and COMS fine market performance as of late<G> Glenn