Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Burt Masnick who wrote (83444)	12/17/1999 3:56:00 PM
From: Bill Jackson	Read Replies (2) of 1572823

Burt, I never said I did. From what Elmer says he sells the right to another person to buy those shares of AMD at $25. For this he gets a fee, the premium. As the expiration day approaches Elmer waits in anticipation....if AMD is above $25...he is safe...keeps the premium. If it is below $25 the buyer says "here you are, $25 each please" and Elmer sadly walks home in his underwear...totally cleaned out<GGG>. Of course the internal bookeeping of the brokerage house will simply credit the client account with the premium to Elmers agreed by at $25 and sell the stock on the market for the market rate, leaving Elmer with the trade loss on the AMD shares, less the premium he received previously.? That seems to be what happens. As for getting $$ into it, well I will read a bit more before I put my money on the line. Bill

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