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To: rudedog who wrote (143661)	10/3/1999 10:21:00 AM
From: edamo	Respond to of 176387

rude..re: dell put assignment the style of the contract allows the buyer to assign the underlying to you at any point in time up to expiration...your cost is still fixed at strike less premium. the chance of assignment is slim, unless the stock gets very deeply below the strike price. i sold on feb 0160 and 0155 with prem of 26 and 22. if you make the sale at a time of inflated implied volatility, the stock can drop but the premium also drops. my leap sales were done with dell at 42 ...stock dropped to 33, the premium failed to move above the point of sale due to normalization of implied volatility. risk factor of assignment still no greater then risk of owning long, in fact dell at 31, put to you at 36, better position then long dell today at 42 with stock at 31. as long as you can accept, and as long as you desire to own, the put sale is less risky then a long buy, particularly a long buy on margin! don't worry, be happy....ed a.

To: rudedog who wrote (143661)	10/3/1999 10:26:00 AM
From: Lee	Read Replies (1) \| Respond to of 176387

Rudy,..Re:. the bet is for a specific price at a specific time. U.S. equity options are usually American Style and can therefore be exercised at any time. The CBOE has good info regarding options and associated nomenclature. From the CBOE: The style of an option refers to when that option is exercisable. At the date of this booklet there are three different styles of options-American-style, European-style and capped. Subject to certain limitations prescribed in the rules of OCC or the options markets and subject to applicable law, these three styles are exercisable at the following times: An American-style option may be exercised at any time prior to its expiration. A European-style option may be exercised only during a specified period before the option expires. Every European-style option being traded at the date of this booklet is exercisable only on its expiration date. A Capped option will be automatically exercised prior to expiration if the options market on which the option is trading determines that the value of the underlying interest at a specified time on a trading day "hits the cap price" for the option. Capped options may also be exercised, like European-style options, during a specified period before expiration. This period is the expiration date for all capped options traded at the date of this booklet. The special terminology applicable to capped options is discussed at the end of this chapter. European-style or capped options having an expiration period that is longer or shorter than their expiration date may be introduced for trading in the future. cboe.com Cheers, Lee

To: rudedog who wrote (143661)	10/3/1999 5:48:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 176387

rude, Both Lee's and Ed Amo's answers were accurate and fairly complete. The deeper in the money the option is, the more illiquid it becomes and the greater the probability of early assignment. This isn't just a possibility. It does happen. I can attest to that. :-( Seeing you get the wrong option symbol for the Jan Puts led me to believe that you had less experience and understanding of options than it now seems. I have no objections to anyone taking a risk so long as that person fully understands the nature and magnitude of the risk actually being taken. Too many people look at selling options as free money. Only to learn that it's anything but, the hard way. FWIW, Ian.