The Motley Fool Discussion Boards

Previous Page

Fool Community Help Desk / Fool News & Commentary

URL:  http://boards.fool.com/hi-dan-as-you-point-out-if-the-stock-price-is-19135162.aspx

Subject:  Re: Getting Paid While You Wait Date:  6/3/2003  2:36 PM
Author:  1000 Number:  8701 of 10419

Hi Dan,

As you point out, if the stock price is high, you may not get enough option premium to justify the risk that the fall in the company's stock price is due to something that would make you not want to own it.

This is what I think Jeff was talking about. He wanted to own the stock so it is my opinion he was not saying he thought the stock was vastly overvalued. Perhaps even undervalued somewhat, but he preferred a greater margin of safety than the present stock price gave him.

tom

Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us