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Non-Tech : The Critical Investing Workshop
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To: Len who wrote (5660)2/29/2000 5:25:00 PM
From: Voltaire  Read Replies (2) of 35685
 
Hi Len,

you either make or lose money at the time of expiration. The money from the premium goes into your account the next day. One must remember, they both credit and debit you account for the amount basically setting up a loan with your shares as collateral. When you write a call in your account you will see that you cash available goes up the amount of the premium and your buying power in a margin account doubles. They also debit your account for the amount of the premium each and every day. In other words premium on calls fluctuate and this will be reflected in the debit. You can spend the money but until expiration it is basically a loan.

I realize this can be confusing but once you have been there done that you will see.

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