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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (83472)	12/17/1999 4:26:00 PM
From: Bill Jackson	Respond to of 1572972

Elmer, The concept is clear, it is wording, as you see later in the same post I say you wait for that person to come....(buyer is the buyer of the option, and you are the buyer of the shares for $25 when they trade for less) From what Elmer says he sells the right to another person to buy those shares of AMD at $25. For this he gets a fee, the premium. As the expiration day approaches Elmer waits in anticipation....if AMD is above $25...he is safe...keeps the premium. *If it is below $25 the buyer says "here you are, $25 each please"* and Elmer sadly walks home in his underwear...totally cleaned out<GGG>. Of course the internal bookeeping of the brokerage house will simply credit the client account with the premium to Elmers agreed by at $25 and sell the stock on the market for the market rate, leaving Elmer with the trade loss on the AMD shares, less the premium he received previously.? That seems to be what happens. Bill