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Technology Stocks : America On-Line (AOL)

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To: Joe E. who wrote (14788)5/5/1999 2:57:00 AM
From: slurper  Read Replies (1) of 41369
 
With a stock like AOL, if you want out, don't just sell the stock, Sell calls and pocket the premiums . Example; Stock price 127
May 130 call is 8 3/4. There fore if you own 100 shares of AOL and sell 1 may 130call, you are GUARANTEED $ 875 above the closing price on the 3rd friday in May. The only downside is that you limit your upside potential to $13,875. Thats still better than 12,700 if you sold outright.
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