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Strategies & Market Trends : Ask DrBob

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To: newmmosx who wrote (99521)	12/3/2008 11:55:14 AM
From: Ira Player	of 100058

Don't forget an important nuance. The options expire on the Saturday following the third Friday of the month. While us retail guys and gals are locked out of decision making after close on Friday. The insiders can still make changes to their plans. For example, if you have calls short at a 50 strike against an underlying that is trading at 49.5 at the close on "Expiration Friday", you would let them expire worthless. However, if a buyout or significant positive event is announced or leaked after the close, the insiders still have the opportunity to take your stock. You may find it gap up on Monday to 65 and find you have been called away... Ira

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