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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Douglas Webb who wrote (7048)	3/6/1998 11:53:00 PM
From: Miguel Gonzalez	Read Replies (2) \| Respond to of 14162

Hey, First of all this site and the people in it are an inspiration and excellent role models for the best that the market can offer. Secondly,I picked up the following resources: 1.McMillan on Options 2.Options as a strategic Investment 3.Listed Stock Options(Luft & Sheiner) 4.Getting Started in Futures(Lofton) 5.Futures. A Seminar(New York Institute of Finance) 6.Winning in the Futures Market(Angell) As a beginner: 1. is the material and courses through the New York Institute of Finance worth the time and money? 2. should I begin my concentration on futures or options? Thanks for the help... Miguel

To: Douglas Webb who wrote (7048)	3/7/1998 4:43:00 PM
From: Marc D.	Read Replies (1) \| Respond to of 14162

A quick question to you covered call experts. Suppose I write a long term covered call on a stock, and the company gets bought out (in a stock swap deal) for a significantly higher price than the strike I wrote my calls at. My question is, what happens when the deal is completed? For example, I buy stock XYZ at $10 share and write Oct 10 calls for, say, $3. Then, a few weeks later, company ABC, trading at $100, buys XYZ in a stock swap deal, giving XYZ stockholders 0.2 ABC for each XYZ, essentially $20/share at the time. A few months later, stockholders approve the deal. Do I get the shares of ABC for my XYZ and the options get converted to some odd decimal strike price? Or does the option holder exercise at that time? Something else? Thanks very much for a response, Marc