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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (12316)	2/4/2000 4:58:00 PM
From: Dan Duchardt	Respond to of 14162

wmchen, If the price is the same you are just as likely to have the stock put to you in the March option as in the february option. I don't see why that would be true. For one thing there are twice as many FEB50s open as there are MAR50s. The holders of the February option have to do something before expiration. The holders of the March option have another month to go. If they think the stock is going up, why would they short it, or sell some they have? If they think it's going down, why not hold on to an option that is already pretty deep ITM with a delta approaching 90% and take advantage of that leverage? Wouldn't they do better to sell the stock (if they have any), and raise the cash? I can imagine someone long the stock owning a protective put and wanting to close out the position early, but the odds of that happening seem small compared to the numbers forced to act before expiration day. Dan