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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: ccryder who wrote (1676)	1/10/1998 1:27:00 PM
From: Valueman	Read Replies (1) \| Respond to of 10852

The call options are not backed by stock. They are the "right" to buy the stock at a specified price before a specific expiration date. So, if I sold the call to you, and the underlying common advanced over and above the strike price, I can either buy that call back at a loss to close my position, or you can exercise the call and I have to buy stock in the open market at a higher price and sell it to you at the strike price. It works in reverse for puts.