Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: chester lee who wrote (7612)	9/25/1996 6:13:00 PM
From: Derek Wildstar	of 58324

>Here are my scenarios: >1. IOMG goes up and closes ABOVE (not at) 35 on the third friday on >Feb 97'. I make 11-1/8 on the stock and keep 2-11/16 for a total of >13-13/16 before commissions. A 57.85% return in 5 months (or 139% >annual). I'm not going to cry if IOMG closes at 90 and I left money >on the table. There are mo sure things in life. And If I'm married to >IOMG than I can always buy the options back to close the position. >That means, IOMG can on feb option expiration day close at 37-11/16, >where I can buy the options back at about 2-11/16 and get to keep my >IO shares. I want to understand covered call writing, but I'm confused. First off, in your first sentence: "IOMG goes up and closes ABOVE (not at) 35" Don't you mean AT (not above)? Second, if the IOMG options expire with the stock over 35, say 90 in your example, what happens? Are your shares recalled and you only get to keep the original 2 11/16 that you got by selling the options? Is this so? Then, if the stock takes off you're basically screwed. Could you explain this more please? Thanks. Wildstar

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