Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: RealTime who wrote (1484)	7/3/1999 10:04:00 AM
From: Jon Tara	Read Replies (1) \| Respond to of 2241

1. While I have been known to frequent the ZULU board (much to the chagrin of the ex-posheads there) I am NOT "the" dude from the ZULU board. That would be PartyTime. :) 2. If you were to exercise the option, you'd be paying the strike price for the shares. You would pay $5/share to exercise your $5 options. (Imagine that!) Wouldn't make much sense if the stock is trading for $4.25, eh? ;) You'd pay $15,000, and be delivered stock worth $12,750. (Your broker, fortunately, would make a vigorous attempt to dissuade you from doing this...) Did you miss the part about "you may lose your entire investment"? If not, but you just didn't quite get it, you now have a graphic example - a "learning experience". I'd suggest spending the $60 or so and getting the McMillan "bible". ("Options as a Strategic Investment".) Read and re-read chapters 1, 2, and 3 until you understand them throughly. The rest of the book will take you (and most of the rest of us, including me) the bulk of the remainder of your lifetime to read and absorb...