1. The person you sold the calls to has the right to pay you 160 not
only in June,but anytime between now and june if INTC reached 160.
2. Yes, you keep 160 plus what he you made from selling calls.
3. Shares can be called only when the stike price of 160 is reached.
As long the caller is willing to pay 160, he can excercise his
option within the time limit. However, only if he is stupid will
pay you 160, while he can buy the shares at 158 on the market, don't
you think so?
4. YES; you keep the shares and the money. This is the beauty of
selling calls, 1 out of 11 calls are ever excersised. This makes selling calls interesting.
5. No harm done, you can buy back at 160, pocket the money you made from the calls and do repeat, if there buyers.
6. No catch.
7. No honest banker or broker should allows you to sell your stocks,
unless you have enoough money to cover the 10,000 shares of INTC at
160 put aside. If we enter into that train of thoughts, we might as
well think of robbing banks, the same thing. Uncovered calls? That is
not done.
8. Yes.
9. Yes, but remmeber, you only win, you can make less profit, but
you still make the money, the metzia,the takhless!!
10. Yes.
Kevin, I did this operation, eactly last week. Stirke 175, june,
and got net 9 per share. I will keep the stocks, and comes june19,
I will write other calls. This is smart to try to make more money.
You can write calls now for July of Augost 175 to 180, but remmber
due to the bug problem still on the back of everyone's mind, there
maybe few callers.
Good luck
Yaacpv |
