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Strategies & Market Trends : Selling Puts: Have Cash Will Travel

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To: Tom K. who wrote (1163)4/10/2000 9:52:00 AM
From: Greg Higgins  Read Replies (2) of 1235
 
Tom K writes:OX, 2 points.... as long as there is some time premium available in the option, there is little likelihood of assignment. It would be foolish on the buyers part.

But nothing loses time value faster than a DITM put. Consider the MSFT 2002 180 puts. With the stock at 87 Bid, the Put is below parity bid at 92 3/4. The only way to get full value is to exercise, and this if for a put 20 months out.
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