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Post# of 704044
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hk2

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hk2

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Re: market_watcher post# 120999

Wednesday, 06/18/2003 3:58:54 PM

Wednesday, June 18, 2003 3:58:54 PM

Post# of 704044

You're hitting on one of my main points, which is that if they short the stock and it pushes the price down to the point where the options expire worthless, they have a fighting chance of breaking even

They buy to hedge. If it continues up after they short, they have to buy back twice as much, once to cover the loss on the short & again to service the call, now for a loss.


Jim

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