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Strategies & Market Trends : AIM Questions and Answers

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To: OldAIMGuy who wrote (177)	7/17/2001 1:12:54 PM
From: Bernie Goldberg	of 221

Hi Tom, You wrote: If you only owned 400 shares, a 100 share order would represent 25% of your position! So, the point at which AIM would designate selling 100 shares might be pretty far away from the current price. That's okay in a way, because it would almost guarantee that the Call option would expire unfulfilled. That is very true. However it also guarantees a very low premium. I would think that it would make your scenario more probable. The one that Barry is discussing with you where you might miss out on some smaller price swings that would increase your profit. IMO covered calls only make sense if the position is large enough that the 100 share minimum covers the minimum trade size as is required in the manner in which the AIM program is set up. Bernie

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