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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sal D who wrote (441)	2/5/1998 9:41:00 PM
From: Amigo Mike	Read Replies (3) \| Respond to of 29382

HI Joe, Lemme help you out with your options questions. Your first paragraph is correct in the definition of a call option ... ie. premium, strike price, etc. Each call option entitles you to purchase 100 shares of common at the strike price of the option by the expiration date which is the third Friday each month. In your example, you have two different option symbols .... CDTGE and CDTGC (Incidentally, neither is the July 35 call). The 'GE' and 'GC' designate the month and strike price of the option. The first letter is the month ....A= January, B= February, etc. The second letter is the strike price .... A=$5, B=$10, etc. Hence CDTGE= CDT July call strike price $25, 'GC' is the July $15 call. Option contracts are always traded based on 100 share lots. Hence an ask of 1 1/4 means you will pay $125 for the option (1 1/4 x 100). The bid and ask are the buy and sell prices just like Nasdaq stocks list bid and ask prices. Feel free to ask me anything about options. They are a favorite investment vehicle for me. If I didn't have a day job, I'd trade options constantly. Amigo Mike