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Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: Vegas who wrote (1331)12/9/1998 8:26:00 PM
From: riposte  Read Replies (1) | Respond to of 3299
 
Correction (?)

<<..So for 500 shares you'd get $685 pocket change. (I paid $12 per share minus the $1.37 I got back which makes my net-adjusted cost per share $10.63) Now if AFCI goes above $15 by options expiration in March, bang my shares get called and I receive a price of $15 each. Needless to say if AFCI is $20 at the time I just got beat for $5 a share...>>

Vegas -

Actually, if the price is $20, and the 15's get called, you've essentially sold them for 16.37, so that takes some of the sting out of it. Is this right? I haven't gotten into options yet, except for on paper.

Steve



To: Vegas who wrote (1331)12/9/1998 8:43:00 PM
From: Les Paul  Read Replies (2) | Respond to of 3299
 
Vegas: Thanks a million! A very clear explanation. It seems like a covered call is basically a no-brainer for a stagnant stock. Is this correct. I have 500 shares of IOM @ 8. Would you suggest writing covered calls for these, and what is the worst thing that could happen to me if I did? One other question... Is there a web sight that gives daily options pricing?

Thanks,
LES


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