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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Greg Higgins who wrote (11605)	9/25/1999 9:47:00 PM
From: OX	Respond to of 14162

Thanks for your reply. You're astute in observing that I am more familiar w/ call writing than put writing. I wish I could add something to your post, but IMO you've covered it well. btw... >I'm not sure if you're assuming I sold it recently... nope, I did not assume that at all.

To: Greg Higgins who wrote (11605)	9/26/1999 6:09:00 PM
From: KFE	Respond to of 14162

Greg, I think that one big difference between exercising a call and exercising a put is that if you do it to a call, cash leaves your account; when you exercise a put, cash enters your account. Your on the right track here. Option price models take into account the cost to carry the proper hedge position. On a put that would be purchasing the stock and on a call that would be selling the stock. For a put option when the cost to carry the hedge(interest on carrying the long stock) is greater than the intrinsic value of the put then the risk of early exercise is great. Regards, Ken