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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (24353)	6/18/1999 12:58:00 PM
From: t2	Respond to of 74651

You can sell covered calls but you have to keep in mind the commissions you are paying. That has to figure in your calculations. When i want to spend some casino money on the options market in options expiration week, I would like to find the options trading at 1/16 or 1/8 so you can pick up a lot of contracts for 1k. The one thing you have to be careful about is the commission structure of your broker. If they have a flat fee for options trade under a certain amount (for example $2,000), then it may be worth trying--commissions under $50. However, i have seen other on-line brokers (which is most of them) charge on a per contract basis ---so on a 160 contacts ($2,000 trade), you could pay about $200 commission. Then it is not worth trading the very cheap options. Commissions should be a little cheaper in the USA---but one broker that charges more for equity trades may charge less for options trades (especially given a flat rate for trades below a certain amount--that is what you need) Maybe we could this more later.