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To: ild who wrote (192797)	9/19/2002 3:08:10 PM
From: LLCF	Read Replies (2) \| Respond to of 436258

<Put seller gets assigned at the strike price if the stock at or lower this strike price. From what you said it looks like there is no contract at all. What the difference between $20.25 and $30 in your case? > The contract is: The put owner has the option to sell stock @ $20. Now theoretically if the stock is @ 20.10 close on Friday, you'd say, why sell at $20, he could have sold @ 20.10. BUT he has the option to sell at $20 if he chooses for some reason... didn't sell enough today, he's running a huge portfolio and couldn't care less about trying to sell stock a few days before and between $20 and $20.50, or whatever.... or let's say the stock has been below $20 the whole time and gets jammed up to close @ 20.25 or something. The put holder says, can I get this price on Monday??? Answer NO! "$20 is a good sale, I don't give a rats ass where it closed" Bottom line. The put owner needs to decide, where will the stock be next week??? If he believes it's lower, he may exercise his 20 puts and go short at that price... it's HIS option, not yours. The difference between $20 and $30 is simply where will it open on Monday??? There have been cases in the past where terrible news came out on Friday afternoon and out of the money put holders exercised stuff dollars out of the money. DAK