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 : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: Rich1 who wrote (4562)	2/1/1999 5:19:00 PM
From: SJS	Read Replies (2) \| Respond to of 19700

That's all there is. You take the stock at 70. If it's 30 when the option expires, you own it at 70. You're down 40 points, because you could have purchased it in the open market for 30, but had the obligation to give someone $70/share for it. If it's 85, you keep the premium. BTW, you can always buy the option back to "cover" the position. It may be higher or lower than where you started, however. If the stock is at 30, then the option is going to be right around 40. Frankly, I can't believe you're asking this after already having executed a naked put sale! Didn't you read the options manual about how these things work? Sorry to be incredulous, but you should always know how derivitives works before you execute a trade using one. If you'd like PM me, I'll explain it before you put your self in a situation you don't want to be in.... Regards,