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