In article <Bxxz46.CoM@news.cso.uiuc.edu>, cs101a64@eng-nxt01.cso.uiuc.edu (cs101 student) writes:
|> In article <sf0xNz70Bwx58D1FB0@transarc.com> writes:
|> > So say I have 1000 shares of USAir and I want to write call options
|> > since I believe that even though the stock is going to go up it
|> > will not do it at a fast pace. So the stock is trading around 13 1/2
|> > how do I compute the cost of each option, for which month should
|> > I write it for? is it worth it to write a smaller block or am
|> > I just going to pay per contract?
|> >
|> > Feel free to use any other company and
|> > thanks,
|> > Jim.
|> >
|> Don't mess around in the futures market. It is hopelessly complicated.
|> If you use the futures market as a hedge, you are defeating the purpose of
|> owning the stock in the first place.
What does the futures market have to do with this question? Options on stocks
are not "futures"? Futures are contracts on commodities and financial instruements such as grains, livestock, precious metals, currencies, etc. and cannot be traded in a stock account.
Eric Peterson
"The sooner you fall behind, the more time you'll have to catch up!"
