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Technology Stocks : America On-Line (AOL)

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To: Richie who wrote (17621)5/19/1999 1:03:00 PM
From: PAL  Read Replies (1) of 41369
 
Although there will be volatility this Friday, option expiration day, fortunately it is not triple wicthing day which occurs in Jan, Apr, Jun and Dec. Selling puts allows for a remedial action like rolling to further months. So, even if the put is in the money, you can just roll it to June or July or Oct on a lower strike price.

You are right that there is a tendency for the stock close around a strike price on option expiration day. Nobody wants to confirm that there are forces influencing that, yet it is suspect.

Good Luck investing

Paul
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