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Technology Stocks : CAWS - Wireless Cable (New and Improved)

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To: .com who wrote (376)11/20/1996 11:43:00 AM
From: Bexar   of 5812
 
Scott,

>>>But now you've got me thinking. If you were buying CAWS new at $3.50, for this purpose only, wrote a June 5 call contract for $1, the stock goes up and they take the stock at $5, you have made a total of $2.50 for a $3.50 investment (the $1 premium and $1.50 profit you get when they take the stock). This is a 71% increase in approx. 6 months.<<<

I'm a little brain fraggled, doesn't this mean that the person buying the call would make the profit between the strike price and up? Do you make the profit between your buy price and the strike price when the stock is called from you? If the person sells the call for a profit, don't you lose the stock? Do you still get your premium if the stock is called from you?

The more I read my own post the more I get brain strain <lol>.

I'm still waiting on Etrade to OK options trading on my account, this is probably for the better, ehh <lol>. By the way your email was the greatest!
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