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Technology Stocks : America On-Line: will it survive ...?

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To: Nasty P who wrote (3821)7/3/1997 1:47:00 AM
From: CLAUDE JOHNSON   of 13594
 
No option commissions on assignment. Its like the options expire worthless. Make sure that the stock going out of your account short on the assignment has the same commissions as if you simply sold stock in your account. My stock commissions were significantly more than yours as I used a full service broker. However, my option commissions were less than yours. I never would have believed that assignment is the lesser of the two evils, but if your commission figures are right ... then you are right! This makes an interesting case for doing the call bear ... although potential profit is slightly smaller than put bear, you get the cash NOW!
Incidentally, why didn't you make the spread 10 instead of 5 ... AOL is one stock that is below 100 that it is easy to seperate the strikes by 10 instead of 5?
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