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Dean,
The answer to your question is "yes"! You keep the stock and the
premium you collected on the option as long as, a here's the catch,
the stock does not go above 15 (and even there, there is a
posibility you might be able to hold on to the stock, long story,
don't worry about it now).
I am a little concerned that you ask this question, since this is a
very basic, a safe strategy. I would suggest that you buy, or check
out at the local library, a copy of Lawence McMillan's "McMillan on
Options"! It's a great book for experienced and new option traders.
I also own Unisys and think it will do very well over the next year
or so. It has more than doubled in the last year, as I am sure you
know. I would simply wait for it to fall below 11 and buy more, lots
more!
Good luck,
Ed Hanley
Bush, Dean wrote:
> I hope you can help me.
> I'm considering selling the UIS (Unisys) Nov 15 Call. (I own the
> underlying
> stock).
> My question is: If I do this on Monday, and the expiration date
> is
> obviously November 21, does this mean that the premium I'm paid
> goes into
> my account and that I hold the underlying stock until option
> expiration,
> and after expiration I can sell the underlying stock and keep the
> call
> premium too?
> Thank you for your help.
> Dean Bush
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