Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 234.37

+0.2%

Dec 2 3:59 PM EST

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To: Lin who wrote (30833)	12/22/1998 3:34:00 AM
From: LWolf	Read Replies (1) of 164684

Lin.... I'm not sure you're clear on the pricing for options. If the premium for 1 contract is $9, the extended selling price is $900, because 1 contract = 100 shares. So if you bought 10 contracts (equivalent to 1000 shares) your price is $9000. Right now the premium for 1 contract of AMZN Jan 320 call is ~32 3/4. If you purchased 2 contracts, your cost would be $6550 and if you like to work in 1000s, 10 contracts would be $65,500. These are nosebleed premiums for the average individual investor. The premiums on more traditional stocks for companies like CSCO, INTC, MSFT, DELL, look absolutely cheap.. but then again, they don't make 25 and 35 point moves in one day.

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