Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: straight life who wrote (36276)	12/23/2009 8:37:46 AM
From: Wallace Rivers	Read Replies (1) \| Respond to of 78847

I will admit that I don't have knowledge of the particulars in this case, I am just referring to normal circumstance. I am an owner, for example, of 100 sh. MSFT. Let's also assume the price of the MSFT July 2010 calls are yesterday's closing price of $1.29. If I am the option writer of this call (it is a covered call because I own 100 MSFT), I have sold the call and pocketed $129 ($1.29 X 100) less transaction costs. My upside is, of course, now limited. Apologies if I have been incorrect in my response in the case brought up by the original poster.