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Technology Stocks : Dell Technologies Inc.
DELL 120.49+0.7%Jan 16 3:59 PM EST
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To: Chuzzlewit who wrote (153384)2/9/2000 11:51:00 AM
From: Geoff Nunn  Read Replies (1) of 176387
 
Chuzz, Let me take a stab at it. Perhaps the put buyer has a loss in the parent stock, and for tax purposes wants to sell prior to Jan 1. This assumes the put expires in January. Another possibility: he is paying a high rate of interest on his debts and needs cash. In either of these scenarios it may be rational for him to exercise early and forfeit the remaining time value.

He could capture the time value if he sells his option, but I am assuming transactions costs make that prohibitive.
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