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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?


To: Howard Clark who wrote (1446)6/15/1999 2:49:00 PM
From: Mama Bear  Read Replies (1) | Respond to of 2241
 
Howard, I exercised in the money DELL May 45 puts about a week before expiry. The premium had completely evaporated, and the bid was actually 1/4 under parity. It made sense for me to buy the stock and exercise, as I paid an extra $12 to capture that 1/4 point. As long as there is a premium on the bid, it would make no sense to exercise.

Barb