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


To: Tom K. who wrote (1163)4/9/2000 11:25:00 PM
From: OX  Respond to of 1235
 
I think we're in complete agreement overall. I should apologize for going down this tangent.
I was trying to adapt our discussion to sberg's original post. but nevermind... we've drifted far from that :-)



To: Tom K. who wrote (1163)4/10/2000 9:52:00 AM
From: Greg Higgins  Read Replies (2) | Respond to of 1235
 
Tom K writes:OX, 2 points.... as long as there is some time premium available in the option, there is little likelihood of assignment. It would be foolish on the buyers part.

But nothing loses time value faster than a DITM put. Consider the MSFT 2002 180 puts. With the stock at 87 Bid, the Put is below parity bid at 92 3/4. The only way to get full value is to exercise, and this if for a put 20 months out.