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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Mary Beth Ford who wrote (17527)	5/22/1998 12:55:00 PM
From: Rob L.	Respond to of 31646

Mary Beth, the options change with the movement of the underlying security (in this case Tava). I am looking to sell some calls against a portion my stock. Right now the Jun 10's are going for about 3/4-7/8. That's a nearly 10% return in just about a month, not bad. The risk is that the stock rises above 10 and my stock gets "called" away from. In any case, I will pocket a near 10% gain plus $10 a share. Anybody who thinks 10% gain in one month is too low because of the potential of the stock is fooling themselves. Regards Rob

To: Mary Beth Ford who wrote (17527)	5/22/1998 2:17:00 PM
From: kfdkfd	Respond to of 31646

Options change just like stocks, there are bids and asks but they are sensitive to the price of the stock as well as month of exploration. The closer to the month in money options move with the stock usually in lock step if the premium has been reduced. Time of options also plays a role. Further out carries a premium while closer to todays month carries a smaller premium. Quick lesson. Look at CBOE web site for further info. Options can be a good source of income while awaiting for the stock to move up. For example I sold covered calls on Keane 55's June for $1.875 when stock was at $48 a few weeks ago. Stock now at $46 and options less than $1.00. These trades are not without risk so you need to know what your doing.