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Technology Stocks : Kulicke and Soffa -- Ignore unavailable to you. Want to Upgrade?

To: j.m. lillich who wrote (2887)	4/23/1998 8:58:00 PM
From: Ian@SI	Respond to of 5482

Mike, To write a covered call, first you must own the stock. For example, say you own 1000 shares of KLIC. To write a covered call for those shares, you are agreeing to sell them at a specified price (the strike) on or before a specified date (the third Friday in a specified month). 1 contract covers 100 shares. 10 contracts would constitute a covered call on the 1000 shares. You would need to be approved for Options trading by your broker. Some brokers allow you to do option orders online, others insist that you go through one of their live options specialists, others permit you to enter some orders online and others through a broke. Only your specific broker can tell you that. If you were willing to part with your KLIC shares at $25 in Oct, then you would sell 10 contracts of KLIC Oct 25 calls. Option symbol is KQS. With month and strike price the fully qualified symbol is KQSJE. At end of day Bid / Ask was 2 1/8 / 2 1/2. 4 contracts were traded today with the last trade at $2 1/2 down 5/8 from yesterday. At any time prior to being assigned you may buy back your contracts should you change your mind. If you're not assigned, you keep the shares and the premium (1000*$2.125 or $2,125). If you are assigned than you keep the premium and get 25,000 for the shares less commissions on both the options and share transactions. Ian.