Formerly About Advanced Micro Devices 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.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bill Jackson who wrote (83429)	12/17/1999 1:49:00 PM
From: Goutam	Read Replies (1) of 1572921

Bill, Emer, So the WRITER is the seller. And on the third Friday on January they stuff them down your throat at $25 and you sell them at $40. and of course they lose $15 each No Bill, you got that wrong! The person that bought puts from Elmer is not obligated to sell to him at $25. The seller can let the options expire. If the stock price ends up above $25 - the seller will not exercise the contract and the contract would expire - allowing Elmer to keep the premium he charged in assigning that right to the seller. Seller would excercise those contracts only if it's beneficial to him/her - in the case when the stcok drops below $25 - say to $15. Goutama

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next