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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST

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To: Beachbumm who wrote (10630)11/21/1997 10:29:00 AM
From: santhosh mohan  Read Replies (1) of 45548
 
Thanks for refreshing my memory about the trading process for options. I have been playing with NASDAQ stocks for so long that I forgot about the CBOE, etc. Regarding OI what you are suggesting is that there is double counting of the number of contracts outstanding. Say, Joe is long 5 call contracts and Fred is short 5 call contracts of the same series, the strike price is 10 and stock is at 16 on the expiration date. The economic impact ignoring the premiums, is 6x5x100 (3000 gain to Joe and 3000 loss to fred) not 6x10x100.

Am glad option writing is lucrative to you. how do you control the risk involved.
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