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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?

To: Porter Davis who wrote (1560)	10/23/2000 6:57:30 PM
From: Stocker	Respond to of 1598

Thanks Porter. And, just who, in your view, would that best discounter be. Just curious. Thanks again.

To: Porter Davis who wrote (1560)	10/23/2000 7:03:22 PM
From: SofaSpud	Respond to of 1598

Thanks, Porter, for the lead on the capped i60. I'm back long the CXY May 42 calls. Hope I'm not going to the well once too often.

To: Porter Davis who wrote (1560)	11/10/2000 3:31:11 PM
From: Cush	Read Replies (1) \| Respond to of 1598

Though I've addressed this to Porter, I hope anyone who cares to enlighten me will jump in. I'm trying to get an initial understanding of what I'm looking at when I look at the Options site. me.org Under Abitibi we have Cycle 5(3) Briefly, what's that mean? Then MGF//MPS 10//20 What's that mean? Then opening Abitibi, Starting from the left Bid Price Ask Price (I see the prices but are there quantities somewhere?) Last Price - zero (that seems clear enough) Net Change (from previous day?) High Low (clear enough) Volume (board lots?) Open Interest (What does this mean?) Month-Strike Price MAR 9.000 (March $9.00 what date in March?) OK, now- If I buy this March $9. call at $4.90 how much do I pay today? Does that give me the right to buy (board lot 100 shares?) at any time from now until it expires at a price of $9.00 ?? Conversely, and more confusing for me, if I bought a board lot of Puts, at $ .30 What do I pay today? Does this give me the right to sell this board lot at any date prior to the date in March that this option expires? Can I sell on any day that I can obtain a price less than $9.00 ?? How do I sell what I don't own? Does the transaction occur without further dollar investment by me, and then I am paid the difference? Thanks for any help guys. Directions to a good book on the subject would be appreciated. Just re-reading this. I also don't understand where the calls or puts I might purchase are then traded. i.e. Am I trading in options after that, or am I trading in the shares that the options were for? Cush

To: Porter Davis who wrote (1560)	1/18/2001 6:00:33 PM
From: SofaSpud	Respond to of 1598

I'm looking for some ideas about a couple of (hypothetical, of course) cases: Case 1: I hold out of the money calls (say $42) for say six months out. The company receives a friendly take-over bid, say at $38. There won't be another offer. What happens to the price of my calls? Since there is no longer any uncertainty, and no possibility of the stock reaching $42, presumable the call becomes worthless? Case 2: I hold in the money calls (say $32), but again six months out. Same company, same take-over bid. The company and its shares will cease to exist in two months. In this case, presumably the time premium goes away; since I could exercise and sell into the bid, the option is worth the difference between the strike price and the acquisition price? TIA.