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

To: Jerome who wrote (55011)	11/5/2001 2:28:02 PM
From: Math Junkie	Read Replies (2) \| Respond to of 70976

In retrospect, it looks like you would have made money already with that strategy. Here's a puzzle for you: apparently the SOX index is not something you can actually buy, yet there are SOX options available. So the question is, when you exercise a SOX call option, what exactly do you get? Also, if your broker does not allow naked calls, then the only way to sell calls is covered ones, but since there is no underlying security that you can own, are you then effectively prevented from selling calls at all? Of course there are always puts. Another puzzle: E*Trade lists two different puts for many strike prices, with widely differing prices. For example, for Dec '01 420 puts they list SOYXD, with an ask of 2.95, and SXXXD, with an ask of 16.30. Do you know what the difference is? etrade.com To see their SOX option quotes, type sox in the little window at the top of the screen and click on "Go." Then in the View window, select "Options" and click "Go" again.