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Technology Stocks : America On-Line (AOL)

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To: slurper who wrote (14790)5/5/1999 8:47:00 AM
From: Bazmataz   of 41369
 
OT: ummm... what??? Don't follow your math slurper.... buy 100sh @ 127, write one May 130 contract for 8.75 = $875. Get called at 130 = $300 on the sale. total = $1175 minus commissions minus taxes. Where'd you get $13,875? True, you're guaranteed $875 bucks, but if the stock is at $50, you've been screwed out of enormous profit if you'd just sold the stock outright... the debate is over how low (or high) the stock can go. Please explain your math so that I may understand your figures. Thx. Baz
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