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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: advocatedevil who wrote (54182)	10/16/2001 3:45:06 AM
From: StanX Long	Read Replies (3) \| Respond to of 70976

To All, anyone, I have been trading stock now for several years as some may know, but now I think it is time for some calls, Leaps for Jan 03. I scanned this data earlier and just wanted your thoughts as to my understanding. This data is from the CBOE. Please correct me if I’m wrong. Jan – 03 Calls with a strike price of $40.00. The premium is $7.40 each in a lot of 100 shares. So, if I wanted 20 calls for Jan 03, than the 20 calls means 2000 shares each costing $7.40, or $14,800, the seller will hold 2000 shares at a cost of $40.00+$7.40=$47.40. Anything above the $47.40 is return on the 2000 shares. If it was at $85.00 in Jan 03 then, 2000 shares $47.40 cost $85.00 value in 01/03 $37.60 spread $14,800.00 invested $75,200.00 return 508.1% gains 03 Jan 30.00 (OPG AF-E) 11.5 03 Jan 40.00 (VPJ AH-E) 7.4 03 Jan 50.00 (VPJ AJ-E) 4.9 If you bought the shares today at $33.64, then 2000 shares would cost $67280.00. Once it hit $85 the return would be $170,000.00 a return of 252.7%. Am I correct in the above understanding? Thanks in advance. Stan