SI
SI
discoversearch

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.
Strategies & Market Trends : Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: AMF who wrote (4503)3/9/2000 2:25:00 PM
From: Poet  Read Replies (1) of 8096
 
Thanks, Anna. I'm no math whiz, so I understand options in a simpler way than most people probably do. It works well for me, though.

The worse case scenario is that your stock gets "called away" if the price of the underlying exceeds the strike price you've sold.

To extend the example:

You sell 20 contracts of the JDSU April 310 calls and pocket $18 per contract.

JDSU closes above $310 on April op expiry. You must relinquish your JDSU shares for a price of
$310 plus $18= $328 per share.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News