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

To: Poet who wrote (10771)	5/8/2001 7:09:02 PM
From: MulhollandDrive	Respond to of 10876

You're welcome, Po... I found the synthetic long description very useful, too.

To: Poet who wrote (10771)	5/8/2001 11:37:39 PM
From: unctarheel	Read Replies (1) \| Respond to of 10876

Poet, I would like your opinion on this option situation. Lets assume the 03 JAN LU 100 puts trade for 90. If one sells 10 LU03 100 puts, this will add about 90,000 to their account. They get about 5% on this balance from the broker and basically a dollar for dollar decrease in option as stock increases. What would keep me from buying the stock now at about 10.50 and putting it to a put seller at 100? How can this seller be so sure his put won't be called before he has a chance to see the stock appreciate enough for him to buy the put back much cheaper? Looks like he is taking a big chance. What am I missing here? TIA