How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Mark Mandel who wrote (6083)	12/11/1997 8:04:00 AM
From: Herm	Read Replies (1) of 14162

Hi Tri-Guy, An options contract is equal to 100 shares of stock. So, $1,000 shares/100 = 10 contracts that could be offered. Only 100 share lots or units are normally used EXCEPT when there is a split readjustment. Say, a 2-1 split announcement would convert the options Calls to 200 shares of stock at half the price of the original strike price. So, the Dec. 20 would become 200 share @ $10 strike price because of the split adjustment.

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