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 : FORE Inc. -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (9963)	12/17/1998 9:13:00 AM
From: Tavros	Read Replies (2) \| Respond to of 12559

Ahhaha, It seems that you must have had some nightmarish experience in options. Since I know a bit about them (I know more about options than most people (no bragging intented, and have been using them for the past 15 years!), I find them as another way to express my views. If I am bullish on FORE (which I am), I can express this view by buying the stock at 19.5, or buy a call option to express the same view (but with different time horizon and without committing the capital). For example, I can buy Jan 2000, call options with a strike price at 10, paying $10.5. So I pay only $1 premium, commit half of my capital, and have floor of $9.0 (10-1), as opposed to a theoretical floor of zero. If this too much for you, just ignore the whole message, but options can offer a very rich way of creating exposures to stocks that otherwise are not available. But, as you demonstrate, they are not for everyone which is OK! Just my 5 cents