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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: TigerPaw who wrote (23603)4/26/2000 11:31:00 AM
From: Uncle Frank  Read Replies (5) | Respond to of 54805
 
>> Most options are closed out before expiration.

I'd be interested to see some data supporting that contention, TP, as my impression is otherwise.

As I see it, there are only two ways that an option can be closed before expiry:

1. If it is exercised by the holder.
2. If it is repurchased by whoever initially shorted it.

Selling to close a long position on an option merely transfers ownership to someone else; it doesn't close the option itself.

uf