InterDigital Inc (IDCC)

[quartzman0]

Call prices change as frequently as the value of the underlying security. They didn't appear to change as often because the actual transactions are substantially fewer. Your broker, Yahoo, or any of the stock price web sites has a link to option prices. The CBOE (Chicago Board of Options Exchange) has a web site where you can get the prices right from the horses mouth - so to speak.

Advice: 1) never sell covered calls on stock you don't want to sell - you will just end up buying it back at a higher price later; 2) sell calls that are short term maturity and near or slightly above current stock price (slightly out of the money). This provides the greatest option premium - the price the buyer pays for the option.

The exception to rule #2 is if you really want to get rid of the stock and are afraid that the price may drop - sell in the money options - but then why not just sell the stock.

Tax implications: buying and selling options does affect your basis cost when doing your capital gains calculation. Look on the IRS website for the publication on capital gains (I forget the number) and check the chart that describes how to handle options transactions. The chart is much easier to understand that the pages of verbage.

Good Luck.
Q

Anybody - anything I forgot??