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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Duncan J Horn who wrote (2223)	2/4/2000 8:58:00 AM
From: Jill	Respond to of 8096

Hi. Well "often" is not quite the word, but I did so on QCOM. Thus cutting my tax burden, accumulating stock, and more margin capacity with which to sell puts. I don't think there's any reason to exercise early. If you've got the cash to exercise a lot of profitable DIM calls, just do so close to or at expiry. But if you don't have enough free cash, you can stagger the exercising over a week or two. Sell some calls, take the profit and exercise some calls. Generate more margin capacity from the new stock. Maybe enough to exercise the rest of the calls, and then get off margin as soon as you can. I did a bit of this with QCOM and then exited out of that margin burden within a week by selling some other things. (I don't tend to keep a lot of dry powder lying around.)