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

To: Jill who wrote (7430)	5/5/2000 10:07:00 AM
From: SecularBull	Read Replies (1) \| Respond to of 8096

Don't split hairs. Dump the suckers! <GGG> LoF

To: Jill who wrote (7430)	5/5/2000 10:09:00 AM
From: Poet	Read Replies (1) \| Respond to of 8096

Yes, good point. Would you explain why you do this, for those who are unfamiliar with the way options act once they approach a value of $1? Knowing about this really helped my option-selling strategies.

To: Jill who wrote (7430)	5/5/2000 2:10:00 PM
From: Bridge Player	Read Replies (1) \| Respond to of 8096

<< Putting in a limit order to close out my SEBl May 100's, they're hovering around 13/16 or so. May lowball it. When open puts get under $1, I try to get rid of them.>> Jill, I am confused about something, perhaps you might explain. If you are long these puts, why did you wait so long to sell them? [My guess is you were short] If short, then unless you need to release the margin to do something else, or perhaps if you are rolling out to capture a greater premium while it is still there, on, say the June 100 puts, why cover them at all? Your post raises an interesting question about why you like to close short naked puts when they get under $1. BP