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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (19802)	2/16/1999 12:36:00 PM
From: accountclosed	Read Replies (1) \| Respond to of 86076

Dell is not exactly taking off pre-earnings particularly on the heels of 12 point decline.

To: yard_man who wrote (19802)	2/16/1999 3:10:00 PM
From: wlheatmoon	Read Replies (3) \| Respond to of 86076

tip, Option question. If I sell naked puts, tell me exactly what happens. Let's use an example. nem is at 18 5/16 Jan 2000 nem 20 puts will get me 6 1/8 per contract. If I sell 10 contracts, that gets me $612.50 premium, right? Now, what happens come Jan 2000 if Nem is 5? What happens if it's at 40? By me selling the puts, that obligates me to buy NEM at 20 in Jan of 2000, right? That means my cost basis for buying NEM will be 20-6.125, right? I can obviously buy the puts back to close out the transaction, but if I leave it open, that's the bottom line, right? If NEM is below 13.875, I lose, if it's above that number, I win, right? Is that the proper logic? Damned, shouldn't have skipped math and hit the thunderchicken and bong a little less. mike