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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Derald Muniz who wrote (13988)	9/26/1998 5:55:00 PM
From: Dwight E. Karlsen	Respond to of 27307

I'll try: "speared a YHOO 120 put" just means I bought one put contract, which gives me the right to sell 100 shares of Yahoo at $120/shr at any time between now and the "Oct expiry". October equity and index options expire on the third Friday of the expiration month. Then the contract expires, meaning it is worthless. Therefore you should try to sell your option contracts before they expire. I have on one occasion let an option contract go into expiration with no action on my part. I thought it was worthless, but in the last day the stock leaped, and so my broker bought me 100 shares at the strike price. I sold them the following Monday, because I didn't have the cash to actually take possession of them. The $8 I paid for my Yahoo put contract is $8 per share, so I paid $800 for the contract. I won't go into a more lengthy discussion than this, since there is also the very important things such as intrinsic value and time value that affect the market price of an option. Ask your broker for the pamphlet "characteristics and risks of standardised options", which they legally have to give you before they can let you trade options. Don't just file the booklet, but read the whole thing.