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.

Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Jean M. Gauthier who wrote (11498)	10/30/1998 10:30:00 AM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

Every time someone starts one of the d*mn rumors about Sun taking over another computer company (e.g. Data General) it takes the wind out of our sails. I wish it would stop. JMHO.

To: Jean M. Gauthier who wrote (11498)	10/30/1998 10:50:00 AM
From: David Evans	Respond to of 64865

>> Still a bit hard to understand, but i'll try I'll try an go a little further. An option is the right to buy (or sell) a particular security at a certain time & price. Somebody who Buys a call, is buying the right to purchase a security, someone buys a put, is buying the right to sell a security. Those options have to come from somewhere, so you have people that sells calls and puts. I tend to sell covered calls, which means I own the stock, and sell options against that stock for money. For example on Sept 18, I sold the November 55 calls on Sunw. The stock was at 48 13/16 and I sold the option for 1 13/16 per share. That meant if sunw is above 55 on the 3rd friday of November (options expire on the 3rd friday of each month) it will taken from me at 55 per share, plus the 1 13/16 I got for the option. Selling covered calls is just one way to enhance returns, with the risk of being forced to sell your stock (at a gain, but you might miss some big upside swings in the stock). The Chicago Board Options Exchange has some good info about options of all types. You might want to check it out: cboe.com Hope this helps Dave