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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: miraje who wrote (17627)2/24/1998 5:13:00 PM
From: XiaoYao  Read Replies (1) of 24154
 
JB,

Thanks for your reply. Several things:

1. Is that I have to have stock in order to sell covered calls? If I had 1000 shares, I can only sell 10 not 11 covered calls, right?

2. For the option expiration, suppose I bought $90 covered calls, if stock price was lower or equal to $90 at expiration date, then I keep the stocks. If it was higher or equal to $90 at expiration date, then I have to sell my shares at $90. Is that right? What about the price was exactly $90 at expiration date? Also is this $90 a closing price or any time that expiration day may reach.

YuanQing,
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