Covered Calls-Writing Covered Calls

Blue H asked:


Basically, i’m wondering what happens to the value of a stock option if one buys it after the date the company formally approves the stock split? I.e If a company approves a stock split on Nov 1, to be excuted on Nov.30 and you buy a stock option on Nov.15.
Basically it’s the price of stock option PUT. If a person purchases a stock option, after the company officially approves a 3 for 2 stock split. (after the date). Since the price of the company is brought down due to the split, wouldn’t the price of the option also increase?

Jonathon Mcclaim

KSHA K asked:


Research In Motion [RIM] not only posted shares at all all-time high but also settled an ongoing lawsuit recently. The suit was over the method in which RIM investigated past stock option grants. Who did RIM settle with?

Archie Arzilli

sean R asked:


made money? also if say a stock were to double how much would the option be worth… that would more than double, right? is there anything i should check volume wise or anything before buying an option?

Chris

hwansoloid asked:


so yea im trying to understand stock options and i get the concept. i know that you have 2 options before the option expires one is you sell it before you it expires or you can hold it. i know if the strike price is below the option is worthless. however what happens if the option expires above the strike price what do you get paid?

Connie Aylward

Buddy asked:


For index option trading, there is a 60/40 rule. 60 percent of the profit is considered long term capital gain. 40 percent is considered short term capital gain. Does anyone how to report this in turbox so that turbotax knows the 60 percent part is for long term capital gain?

Thanks.
Thanks.

BTW, I use turbotax online. How do I manually override with “long term capital gain”?

Kara

Skinner asked:


Here is the link: ( http://finance.yahoo.com/q/it?s=GLUX.OB ). I’m interested in how board member, Voss, affected company net profit with his stock option transactions in April. The company only posted a net profit of $20K at the quarters end in late June. Just wondering if his stock option transactions played a significant role in this low profit. Thanks!

Modesto Faustino

salah asked:


i appreciate the feedback from anybody whom has a successful experience in subscribing to a stock option newsletter.

Margarito Rhone

quangbi asked:


I exercised my NQ stock option in 2006.

Toby

Ken L asked:


I just exercised some ISO stock option by buying and holding the stocks. I have not sold any of the stocks yet. Do I need to report to IRS now about the exercise?

I understand at the end of the year I need to report it on 1040 for AMT calculation. I just don’t know if there something I need to file right away, say within 30 days of my exercise.

Rolf Sappah

Joe Joseph asked:


I understand what an option is. But what is the difference between option on the stock index and option on the stock index futures?

Faith Cebula