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.

Technology Stocks : Scientific Atlanta -SFA- going up ??? -- Ignore unavailable to you. Want to Upgrade?

To: kili who wrote (158)	11/4/1997 1:16:00 PM
From: Donald L. Neely	Read Replies (2) \| Respond to of 1045

Kim, not an expert will tell you what I know. Works essentially the same as stock options. Using the S&P index as an example, for calls you are buying the right to buy the basket of shares that make up the OEX (S&P 100) index on or before a certain date at the strike price. Currently a single contract for Feb 840 is selling for about $94 which equals 100 shares so the option will cost you $9400 plus commission. In this example you are betting that the index will go up during the life of the option. I bought one contract yesterday for $92.00 (OEXBH Feb 840) per share or $9200 for the contract and the option got as high as 98 duing the day for a profit of $600 minus commissions (if I had sold). Hopefully this thumbnail will help some.