Novell, NOVL, I really need some advice Message Board

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Technology Stocks : Novell, NOVL, I really need some advice

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To: Malsi who wrote (25)	7/2/1997 1:31:00 PM
From: Ayman Abukhater	of 46

Malsi, Buying the stock is called exercising the option. Most of the time investors don't do that. When the actual price rises, the option premium also rises. For example, if NOVL is trading at $10, the option could be trading at $5 or $6. Also, some other factors come into play in the price of the options, like momentum if the stock , how much time left till expiration, and so on.. You may elect to sell the leap before the expiration date. I tend to buy leaps to supplement my other investments. I can leverage the money better that way. Currently I own leaps on AMD, SUNW, COMS, CSCO, and NOVL (Just bought some). Regards, Ayman

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