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 : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Jacky AY who wrote (34874)	3/19/1998 2:25:00 AM
From: Mark Sanders	Respond to of 176388

Jacky, Good overview. However, there is one correction I'd like to make: > However, if you sold an option, the opposite party paid you premium > for your obligation to buy/sell the stock at the strike price. The > most you can lose is, theoretically, infinite. (1) If you sell a PUT, your loss is limited between the stike price and 0 (multiplied, of course, by the number of shares). (2) If you sell a CALL, your loss is unlimited. (2*) If you own shares in a company and sell CALLs equivalent to those (i.e. sold 10 CALLs when owning 1000 shares), then your risk is limited to selling the shares you own at the strike price. Mark