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Non-Tech : Any info about Iomega (IOM)?
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To: Jon Tara who wrote (30395)9/19/1997 6:17:00 AM
From: Rajendra KRISHNAN   of 58324
 
Jon, (and all optons folk)

I dont think I made myself understood.

Lets say I write 1 contract when the IOM price is 27.5 for the 25 strike price. At this stage the price is 2.5 + change.

The stock is going up the last day or two before this was done and continues to go up. The option is bought by someone at a premium of 2.5+change (its bought as soon as I write it) . OK so far ?

If so I cannot lose money unless the stock closes below 27.5. Right ?
The option buyer can exercise the option to get EP-SP-2.5 where SP is strike price and EP is exercise time price. Or he can just sell the option when the stock price goes up above 27.5.

This is what I was talking about. If the majority of options were written at or above
26.25 and sold after that when the price was more than 26.25 why should all these option writers lose money unless the price is below 26.25 ?

Responses appreciated.

Thanks

R Krishnan
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