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


To: taxman who wrote (983)1/24/2000 6:39:00 PM
From: KFE  Read Replies (2) | Respond to of 1235
 
taxman,

lesson is don't be afraid to exercise if market maker doesn't play fair. it can always be closed out on monday in the regular market

This is very dangerous! Suppose the stock gapped open on Monday. If all you wanted to do was close out the position then you probably should have exercised and simultaneously bought the stock to cover on Friday. This would have locked in the parity price that you were looking for.

Regards,

Ken



To: taxman who wrote (983)1/24/2000 6:42:00 PM
From: OX  Read Replies (2) | Respond to of 1235
 
good trade!
the moral of the story is that it pays to know the stock.
if you're not knowledgeable, it could have easily gapped up as down... so not always prudent to exercise just to collect a few extra teenies.
you're on a roll taxman!