Pixar Animation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Pixar Animation

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: gizelle otero who wrote (1865)	12/3/1998 6:06:00 AM
From: Linda Kaplan	Read Replies (1) of 3261

The only problem with that strategy is that if the stock runs away to the upside, you lose the stock at the strike price and don't participate in the rally. Say the stock goes to 75 in December. The stock can be assigned even before the expiration, but if it isn't, would you or the author of the note pay $17 to buy back options he sold for $4.25, in order to keep the shares? If not, you get $50 for the shares, the stock is at $75 and you can buy back some of your stock, but if you only have $54.25 a share to do that (the old premium you got plus the amount you got for your shares, you end up with only a little more than 1/3 the number of shares you started with. Linda

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next