Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Matteo who wrote (30417)	10/5/1999 4:46:00 PM
From: Teflon	Read Replies (2) \| Respond to of 74651

OTMatteo, regarding CNET...80% of the puts I sold short were put to me at ~ $42 per share. Luckily for me, I was prepared for this to happen as I never sell puts unless the underlying security is one that I want to own regardless, and the strike price is a relatively fair price especially once the premiums are factored in. The good news is that since those shares were put to me, I've made quite a bit of profit in the underlying shares, plus I got to keep all the premium I made on the put sales. This scenario reinforces my methodology on shorting puts, you must be comfortable (and have the funds available to cover) with owning the underlying shares in case they are put to you. What most people don't realize is that you can have shares put to you at ANY time when you're short, whether the strike price is in the money or not. The shares are allocated by a lottery type method, and there's simply no guarantee that you won't be forced to accept the shares even if you've made money on the premiums and the stock is trading above the put strike price. Teflon