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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Tony who wrote (791)	3/25/1998 2:32:00 PM
From: Carl Fritch	Read Replies (2) \| Respond to of 2241

Hi I will try to answer your questions: If an option expires "out of the money" and you wrote a covered call you keep the stock and there isn't any additional charge. If the option is "called" you will be charged an additional commission for the sale of the stock. Option prices tend to move with the stock price almost simultaneously, however, they can move independent of the stock price as well... it is possible for a stock to be trending up with the option staying the same or even moving down in price because of the "time decay" or other factors. Usually, there is a slight delay before the option price moves after the stock price moves. At least that is what I see... all of the quotes I get are 20 min. delayed. I can't help with Scottrade... I haven't heard of them. hope this helps, Carl