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To: UnBelievable who wrote (29148)10/17/2000 9:20:13 PM
From: Don Lloyd  Respond to of 436258
 
UnB -

I am going to call the broker to verify how I should exercise my JNPR 175 poots when they are in the money on Friday.

You do NOT want to do this.

First, exercising your puts leaves you with a short position in the stock, IF your broker has the stock available for loan, and you will only be able to retain the short position IF it remains available for loan in the future, AND your margin position allows it.

If being short the stock is what you really want, you should be trying to short it now at ~50 points higher. The put option simply will have no value after Friday and what it can be used for on Friday can be done directly without it.

Good Luck, Don



To: UnBelievable who wrote (29148)10/17/2000 9:26:27 PM
From: IceShark  Respond to of 436258
 
Wait, wait wait!

If you exercise them you are selling them short. You got the scratch for that?

The only times you want to exercise is if they won't give you intrinsic and you are going to do a cross trade that is cheaper than the spread offered, or you think there is something funny going on and you are ITM and want some more time, with all that additional capital at risk. I'm not sure you know what you are getting yourself into.


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