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To: straight life who wrote (36276)	12/23/2009 8:37:46 AM
From: Wallace Rivers	Read Replies (1) of 78850

I will admit that I don't have knowledge of the particulars in this case, I am just referring to normal circumstance. I am an owner, for example, of 100 sh. MSFT. Let's also assume the price of the MSFT July 2010 calls are yesterday's closing price of $1.29. If I am the option writer of this call (it is a covered call because I own 100 MSFT), I have sold the call and pocketed $129 ($1.29 X 100) less transaction costs. My upside is, of course, now limited. Apologies if I have been incorrect in my response in the case brought up by the original poster.

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