Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: prgraphics who wrote (633)	6/4/1998 7:39:00 PM
From: Ross	Read Replies (1) \| Respond to of 3558

prgraphics You said: "Jan, 1999 20 C's are at $2! No question I going to pick up a few contracts tomorrow. with virtually no time value being tagged to the calls I'm willing to give it a shot. Gary R." If your refering to the American ABX then you may need to recalculate your time value.. ABX currently @ US$18.625 and the jan20's are at $2.00.. Seems your paying US$3.375 for the time. If the 20's give you the right to buy the stock at 20.00 and it is currently at US$18.625 and you exercised the call just after you bought them you would have paid the US$2.00 plus US$20.00.. Or, US$22.00 for a stock that is selling at$18.625. The Jan12.5's have less time value.. $12.50+6.875=19.375. ABX currently at $18.625 and the cost basis is $19.375. Your time value premium is $.75. Much better time value, not as much bang for the buck, short term.. Ross