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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?


To: MileHigh who wrote (7272)9/18/1998 10:23:00 AM
From: jopawa  Respond to of 93625
 
Thanks. I don't do the options thing, but I thought I was semi knowledgeable! Essentially above 56.5 you are guaranteed to get called away, and below 56, pretty unlikely. Have a good weekend.

John



To: MileHigh who wrote (7272)9/18/1998 10:42:00 AM
From: jopawa  Read Replies (1) | Respond to of 93625
 
MileHigh,

Last question. Let's say RMBS stays at 50 on the second Fri of Oct. You however are nervous about the next week, and you don't want to risk getting called away if RMBS explodes. You could then go and buy back your call at a much cheaper price and pocket the difference, and avoid the possibility of the stock getting called. Correct? Is that what you normally do, or do you always ride it out to the end?

John