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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 229.10

-1.4%

3:59 PM EST

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To: Jan Crawley who wrote (4374)	5/16/1998 8:05:00 AM
From: Glenn D. Rudolph	Read Replies (2) of 164684

I will take assignment for my May $100 Amzn puts on Monday morning; indirectly, it translates into that I would be "shorting" the Amzn raw shares on Monday after opening; I would be shorting 200 Amzn raw shares until I purchase them and close them indefinitely... Jan, I am not clear on your position. I assume you bought puts at strike of $100 and did not write puts. If you own the puts, you have the right to make an assignment not take assignement of 200 share at a strike of $100. This means you are in fact selling 200 shares of AMZN you do not own and that would make you short 200 shares. However, if the brokerage house does not have shares to short, you will be short shares during the open on Monday but the brokerage house has a right to force you to cover. Thus, they will buy your short to cover in your account and you keep the profit the sames as if you sold your puts on Friday assuming the stock is about the same price on Monday. If they do have shares, you will be short raw shares until they force a cover which may be never. Did I makes sense?<G> Glenn

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