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Politics : Stockman Scott's Political Debate Porch
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To: Dnorman who wrote (2695)7/20/2002 1:25:27 AM
From: Jim Willie CB  Read Replies (4) of 89467
 
liquidity in QQQ options is utterly enormous, relax
let's suppose you are miles and miles "in the money"
then options will trade at parity, right?
they will forfeit all premium
at that point, QQQ option put contracts would be highly liquid, easily converted to the cash market with QQQ baskets

translation:
dealers will buy back your profitable QQQ put contract,
and immediately sell QQQ stock basket as offset,
thus profiting himself/herself with a nice little bid-ask spread on the option
quick, easy, no problemo

but check if you can on WCOM option put selling
I know simple shorted shares were easy
but even for these little piggies, liquidity was good with the shares selling around 20 cents

the point to remember is that heavy inthemoney puts sell like shares via simple conversion
make sense, hoser?
/ jim
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