EFTA Document EFTA01353454

EXAMPLE: When XYZ stock was $50. the inves- tor collected a S4 a share premium by writing an XYZ 50 delivery call. As expiration approaches, the stock has risen to $58 and he is assigned an exercise. His total return, in addition to any dividends received, will be the $50 exercise price he is paid for the stock plus the $4 premium collected when the option was writ- ten--$4 a share less than the $58 he could have sold the stock for if he had not written the option. On the other hand. if t