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Politics : Ask Michael Burke

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To: miklosh who wrote (34398)10/23/1998 12:14:00 PM
From: Knighty Tin  Read Replies (1) of 132070
 
Mik, Re Z's comments. Deep in the moneys are not always a great choice. If Amat stays high, it will be called from you. But there is no rule that says the caller has to wait until January to do it. As the stock rises, he has a large cost of cash to carry that call. If the premium drops below that cost of carry, he will exercise early, perhaps in December. Of course, you can buy to deliver new shares without touching your old shares, but then you are back to the commissions problem.

MB
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