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 : A.I.M Users Group Bulletin Board

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: OldAIMGuy who wrote (14461)1/22/2001 2:58:30 AM
From: axp  Read Replies (1) of 18928
 
RE: It's also not bad when the contract expires unexecuted as the premium you've been paid is pure fun money

I must not be understanding this part right.

1) AIM says sell 100 shares at $30
2) Instead of selling, you hold the shares and sell a CALL contract. You get some extra cash.
3) The price declines and the contract expires.

It seems to me you are still holding shares AIM wanted to sell, but now they are at a lower price. Haven't you subverted the original AIM sale in exchange for some CALL premium?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext