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Strategies & Market Trends : Tech Stock Options

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To: Brian Collins who wrote (6626)4/1/1997 2:03:00 AM
From: arar   of 58727
 
Sorry for interrupting- Can somebody clarify a issue about options.

Is it a bad idea to BUY options which is traded thinly(< 10 open interest). If even the option is in money but not enough to cover the
premium - it could be difficult to sell the options bought. For example xyz 40 put is bought at $4 when the stock is at $40. Now the stock is at $38 and puts selling at $5. Is it possible that i could lose out on this gain for want of liquidity? or am i missing something.

Thanks in advance ,
arar

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