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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (74622)	11/15/2007 8:41:54 AM
From: Elroy	Read Replies (1) \| Respond to of 77400

I sold a call, which is the right to buy CSCO at $32.50, and it expires this Friday. Nobody will pay for the right to buy CSCO (which is about $30 today) at $32.50, right? So as long as CSCO is less than $32.50 on Friday, it will expire unexercised and worthless. On the other hand, if CSCO were $35 tomorrow, then the call is worth $2.50, and it would be exercised by the owner and I would be forced to sell my CSCO stock (which is worth $35 in this theoretical example) for only $32.50 to him.