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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Ali Chen who wrote (178415)	6/26/2004 8:33:46 PM
From: Elmer Phud	Respond to of 186894

Ali - This is getting ridiculous. "Later"(today), before the call was exercised, you were an owner of 100 shares, or 100@30=$3,000 worth. You "deliver" 100 shares @20, you lose $1000 (minus premium which you agree not to include for the sake of simplicity). I see the obvious is too complicated for you. No, those shares were never worth $30 because a $20 cap was placed on their worth when the CC was sold. You already lost the upside above $20. That's the risk a CC writer accepts in exchange for the premium. It's easy to say it was a bad decision after the fact but that's the risk an options writer takes. When a company grants options on shares just repurchased they are placing a cap on their value too. That cap is the grant price. They are risking lost opportunity in exchange for the employee's services.