A.I.M. Users Bulletin Board

[SFSecurity]

Thanks Toofuzzy for pointing out that you keep both sets of premiums when you sell both a call and a put as only one can be exercised no matter which direction the market moves.

This means if the call is exercised you'd have gotten $550 option premium plus the $56 for the sale of the stock at $12 when you bought it at $11.44. This compares to the sale at the AIM point with a gain of $88.

For the put your cost for being assigned would be $1,000 minus the $550 option premiums or $450 thereby reducing your cost per share to $10.98, down 4%

Best,

Allen