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Strategies & Market Trends : Option Trades -- Ignore unavailable to you. Want to Upgrade?

To: Thai C. Nguyen who wrote (612)	2/1/1998 1:00:00 PM
From: scotty	Respond to of 2341

Thai,you might try Options for newbies thread,I haven't tried that strategy.

To: Thai C. Nguyen who wrote (612)	2/1/1998 5:39:00 PM
From: SFW	Read Replies (1) \| Respond to of 2341

Thai, You are not missing something. However, unless you expect the stock to go below 10 your stock will be called away and you'll get $10 + $5 from the calls minus the commissions of buying the calls and being assigned. All in all, it may not be much different than selling your stock now. If you like the stock and want to keep it you could sell an upstrike call, 15 or 17.5 if they are available. It all comes down to finding your comfort zone with this stock, which I know nothing about so make your decisions based on what you know, not what others tell you to do. Abed

To: Thai C. Nguyen who wrote (612)	2/1/1998 8:22:00 PM
From: Rick Hildebrandt	Respond to of 2341

Thai: I think your understanding is correct, you can sell covered call options at 10, and then the buyer will excercise the option forcing you to sell your shares. You end up with a sale at $10 or $1000 plus the option sale, $500. You could have just sold the stock at market at 15 for $1500. Let me know if this is your understanding. If the option is never exercised (unlikely) $4 in the money, you would keep the option sale premium $500. Pls advise. I'm going to try this also. RickH