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DESPP change
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<blockquote data-quote="1989" data-source="post: 525903" data-attributes="member: 10280"><p>This morning when UPS was trading at $51.71 you could have sold a May $50 put for $110 (that means you would be obligated to buy 100 shares at $50 anytime before expiration) Your cost would be $48.90 a share if the shares were put to you. If at expiration the stock price is above $50 you would keep the $110. You made $110 on the $4890 you put up to fill your potential obligation. </p><p> </p><p>Options typically expire on the 3rd Friday of the month. So on May 15th you would either own 100 shares of UPS at a 5.5% discount from the $51.71 price or made 2.2% return on the $4890 you put to risk.</p></blockquote><p></p>
[QUOTE="1989, post: 525903, member: 10280"] This morning when UPS was trading at $51.71 you could have sold a May $50 put for $110 (that means you would be obligated to buy 100 shares at $50 anytime before expiration) Your cost would be $48.90 a share if the shares were put to you. If at expiration the stock price is above $50 you would keep the $110. You made $110 on the $4890 you put up to fill your potential obligation. Options typically expire on the 3rd Friday of the month. So on May 15th you would either own 100 shares of UPS at a 5.5% discount from the $51.71 price or made 2.2% return on the $4890 you put to risk. [/QUOTE]
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