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To: Mavrick who wrote (489)5/6/1999 3:00:00 PM
From: margin_man  Respond to of 2241
 
Say I bot 700 shares DELL at 41 1/16. The premium for selling
May 42 1/2 is 2 bucks. I have 700 shares, I can sell
7 calls (1 call = 100 shares). So I will get 700 x 2
or 1400 bucks less commiss. If DELL closes above 42 1/2 at the
expiration day, I will get called and deliver my shares at 42 1/2.
And if DELL closes below 42 1/2, I'll keep the shares and pocket
the premium.

P.