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Strategies & Market Trends : Point and Figure Charting

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To: james ball who wrote (5592)8/9/1998 4:49:00 PM
From: Challo Jeregy  Read Replies (2) of 34811
 
Hi Tom. One reason that I'm chicken to play options is that I don't fully understand the trades behind them. (After asking my question, make that, don't understand at all <g>)

If you sell a call on a stock and the stock is above the strike
price on expiration the Option Clearing Corporation will take the stock.


With a stock going down almost everyday at 1/2 pt or more, what call would you look at to sell?

Let's say, stock XYZ is @30 on Aug 10 (and you anticipate it going lower). Do you sell Aug 30 calls?

BTW - Above all in options, KEEP IT SIMPLE!!!!!!!!!!!!!!!!!!
Thanks for not adding the infamous stupid <g>
I'll be watching you on Monday.
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