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Strategies & Market Trends : Tech Stock Options

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To: broken_cookie who wrote (58345)	2/23/1999 8:53:00 PM
From: Soumen Barua	Read Replies (1) of 58727

Suppose I buy INTC 150 put right before expiration at 10 and then it goes down to 140. If I don't do anything before expiration the brokerage firm will be worried because exercising that option would require capital that may not be in the account and the firm usually will not take the risk of using their own funds. Therefore, they may decide to sell the option instead and collect the premium. This is a theoretical example. However in a fast moving market lot of things might happen. This uncertainty is caused because that put is near to expiring and no decision has been made about it. Good luck.

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