But if the price of Microsoft stock falls 50 percent, the individual is stuck with those losses.
For a while, he believed his Microsoft stock would make him a rich man.
A single $1 share of Microsoft stock held since 1981, before the company went public, is worth approximately $1,500 today.
Microsoft stock fell 17/16 yesterday, to 97 7/8, dragging down the price of other software firms with it.
When the price of Microsoft stock is down, that $100 will buy you more shares.
The result, over time, is that you end up buying Microsoft stock at an average price per share.
You could write a call option on Microsoft stock, agreeing to sell it for, say, $110.
Microsoft stock slipped $1 the day after the announcement, to $127.50, and has now fallen below $120 a share.
Microsoft stock was up 87.5 cents today, to close at $70.50.
Take someone who bought some Microsoft stock a decade ago when it cost about $2 a share.
