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Technology Stocks : America On-Line: will it survive ...?
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To: CLAUDE JOHNSON who wrote (3810)7/2/1997 10:10:00 PM
From: Nasty P   of 13594
 
Claude,

Thanks for your advice. Here's why I'm not closing:

1) To close it out would cost me 5 1/8 (based on today's closing). If I am assigned it's only 5. One area that I am a little clueless is the commissions: I know there is a charge for assignment and also for exercise; so, when I exercise (get assigned), do I also pay additional commision for the purchase (sale) of stock? If not, then I'd rather wait since exercise/assignment is cheaper than an option trade.

2) My maximum loss is only 2 1/4; I thought about buying straight July 50 puts at the same time I did a spread. The cost was higher by 1/2.

3) Regarding bear spread with puts: the difference was very insignificant at that point; in that case, I'll take the money first since I can earn interest on them in the meantime.

Does it make sense what I say? Your thoughts, suggestions...
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