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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Andrew who wrote (48639)	2/17/1999 3:35:00 PM
From: Jimbo Cobb	Respond to of 97611

>> How can I sell something I don't own? It's the same concept as shorting a stock you don't own... In this case you are selling someone else the right to put the stock to you at a given time and price and they are paying you some money up front for that right....you are in effect selling them an insurance policy, and if the stock tanks, you have to buy their stock from them at a higher price...if the stock doesn't tank, you get to keep the money they paid you for the insurance policy....this is an over-simplified way to look at it, but it can be an effective way to buy stock at a lower cost basis if you don't mind the risk you are taking on... Jimbo.