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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (950)	1/24/2000 10:11:00 AM
From: rrufff	Read Replies (1) \| Respond to of 1235

From my understanding options actually expire on Saturday after the Friday trading is over. I may be very wrong on this, but let's say the stock closes above the put strike. Normally, that's it, pocket the premium and go on. Now let's say with very thin after trading market, someone is able to move the stock down by a point or so after the close on Friday. Now you find that instead of collecting the premium, you are put the stock. The leverage on the put would allow the person(s) long the put to make some significant money by shorting a few shares after hours. Now I know that you always be prepared to own the stock, but this is a new variable, I think. Any comments would be appreciated and if I am totally wrong, I apologize.