02-04-2011, 12:54 PM
OK got you.
Your example brought up a question in my mind, not related to your example. Do you know what would happen if the writer of a call could not cover it? So lets say Joe Schmoe wrote a call for your example of intel, and someone bought them, the stock rockets to $100 a share, and Joe cant cover the call? He is broke.
Does the brokerage company cover this? or the buyer of the call get screwed?
Your example brought up a question in my mind, not related to your example. Do you know what would happen if the writer of a call could not cover it? So lets say Joe Schmoe wrote a call for your example of intel, and someone bought them, the stock rockets to $100 a share, and Joe cant cover the call? He is broke.
Does the brokerage company cover this? or the buyer of the call get screwed?
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
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"If you want to change the world, be that change."
--Gandhi