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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (8863)	10/20/1998 11:25:00 PM
From: Eddie Kim	Respond to of 14162

Thanks for your response. -Eddie

To: Herm who wrote (8863)	10/21/1998 12:37:00 AM
From: boredman	Respond to of 14162

Can anyone recommend a discount broker on-line who I could start option trading with and the comissions they charge.

To: Herm who wrote (8863)	10/21/1998 8:49:00 AM
From: R Sass	Read Replies (1) \| Respond to of 14162

Herm I have often heard that about 70% of all options expire worthless. However, I believe that the number is very close to 50%. The reason is quite simple. Assume that you have a stock trading at 30. The options that will be available are the 25's, 30's and 35's. Regardless of where the stock finishes, 3 of these 6 options will be in the money and three will be out of the money. If the stock falls to 10 the three puts have value and the calls are worthless. If the stock is at 40 the calls have value and the puts are worthless. At 30 the 35 puts have value, and the 25 calls have value. As for the 30's, they would probably be considered worthless as well. Ralph