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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: isdsms who wrote (35985)	11/16/1997 5:02:00 PM
From: Gary Wisdom	Respond to of 58324

Re: Writing out of the money $ calls Sorry, Ira, but there is no such thing as a sure thing. Example: You own 1000 shares of Iomega. Your cost is $24. The current price is $29. You write 10 Nov 35s. Let's say you sell them for $.50 each. Scenario #1: The stock drops to $20. You make $500 on the options and lose $9000 on the stock. The stock rises to $40. You make another $6000 on the stock + $500 on the options, but leave $5000 on the table. I do not think writing covered calls is bad. However, there is no such thing as a free lunch. Good luck.

To: isdsms who wrote (35985)	11/16/1997 6:19:00 PM
From: KM	Read Replies (1) \| Respond to of 58324

Ira: Here's something that explains it better than I ever could: archive.thestreet.com

To: isdsms who wrote (35985)	11/16/1997 11:25:00 PM
From: Steven J. Tomesko	Respond to of 58324

<How is that? Writing out of the $ covered calls is a conservative approach in which you can not lose money.> You take the good with the bad when you write covered calls. You receive guaranteed money for writing the call, however, there is a potential to loose a lot of money if the stock continues higher than the stirke price and the stock gets called away from you. When you write a covered call, you have to be comfortable with the fact that the stock will get called away from you. Or else, don't write the call. I've written many covered calls and I would say that 25% of mine were called away from me and that I "left money on the table."