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Can anybody help please? Thanks a lot!

eleanor(Eleanor)

I wanted to short cenx August 10 call, the price is now 0.7 according to yahoo finance. is this price for one contract, which equals to 100 shares (if I understand correctly) or for one share?

I have 1000 shares of cenx, I wanted to know how much I need to sell to hedge my shares.

Thanks a ton!

(#99322@43)
Last Updated: 2009-8-3

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Can anybody help please? Thanks a lot! -eleanor(Eleanor); 2009-8-3 {302} (#99322@43)
I wanted to short cenx August 10 call, the price is now 0.7 according to yahoo finance. is this price for one contract, which equals to 100 shares (if I understand correctly) or for one share?

I have 1000 shares of cenx, I wanted to know how much I need to sell to hedge my shares.

Thanks a ton!

0.7=> 1 share, 1 contract = 100 share , that is $70; 1000 share => 10 contract ( $700) but, short Call to hedge??? or covered call only 收租? -haah(木头。空.满.空); 2009-8-3 (#99323@43)

short call to hedge. I have 1000 cenx shares. And I think the price will not exceed 10 by aug10. does it make sense? -eleanor(Eleanor); 2009-8-3 (#99324@43)

I think, you BET the price will not high than 10 before Aug22 then you can collect $700. if you worry about the price will drop below to ,for example 8, then you maybe think about HEDGE it by buy a 9 Put. -haah(木头。空.满.空); 2009-8-3 {100} (#99325@43)
If the price will not beyond 10 before Aug 22, the cost of your 1000 share then drop 0.7 a share....

what about if the price hits 10 tomorrow and then goes lower than 10 on August 10, in this case do I still have my shares? -eleanor(Eleanor); 2009-8-3 {186} (#99327@43)
I am thinking of selling aug 10 10 calls, as I think the price will be lower than 10 on august 10, but I am not sure between now and august 10 whether the price will hit 10 and go above.

For example, if you have 1000 share + short 10 contracts Call_10.00; if next few days,price go up to 10.50. At that moment, the Call_10.00 will maybe 1.15 ( =0.5+0.65), if the buy side exercise,he/she will lose 0.65/share time value, -haah(木头。空.满.空); 2009-8-3 {403} (#99328@43)
so normaly will no one like to exercise, but there is someone maybe will do like that.

IF there only few days to expire,time value only 0.10, the price is now : 10.50 and the Call_10.00 will maybe 0.6( =0.5+0.1), then the buy side maybe exercise. Your 1000 share gone.

The key point is , DO you want to sell your 1000 share @ (10.00+0.7), and if the price go down, do you still want to keep it?

Can anybody help please? Thanks a lot!

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