Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 210.80

-4.8%

3:59 PM EST

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To: neolib who wrote (200237)	6/4/2006 4:34:41 PM
From: Petz	Read Replies (1) of 275872

neo, you spoke of a way of exiting a call position at expiration, by shorting the common, followed by purchase of the assigned shares. This would work even if the shares fell below the strike, since then you could simply purchase on the market to cover. Why pay the time premium of selling a call option as the means of exiting the position? The last sentence I don't understand. Selling any time premium is good, not bad. If there is any. I have often seen the "bid" on calls below intrinsic value when in-the-money. In that case if you tell your broker you are exercising, you should be free to sell the shares in either the regular or after-hours session. Once I unstructed the broker to use a "versus purchase" of Friday for the sale, but it did not go through that way -- it in fact was shown as a short sale that was covered by the assignment. Petz

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