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Strategies & Market Trends : Option Trades

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To: Thai C. Nguyen who wrote (612)2/1/1998 5:39:00 PM
From: SFW  Read Replies (1) of 2341
 
Thai,

You are not missing something. However, unless you expect the stock to go below 10 your stock will be called away and you'll get $10 + $5 from the calls minus the commissions of buying the calls and being assigned. All in all, it may not be much different than selling your stock now. If you like the stock and want to keep it you could sell an upstrike call, 15 or 17.5 if they are available. It all comes down to finding your comfort zone with this stock, which I know nothing about so make your decisions based on what you know, not what others tell you to do.

Abed
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