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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (846)	8/31/2007 9:04:03 AM
From: stan_hughes	Respond to of 71456

We don't really know whether there was a premium to cash for those ITMs at the time of the transaction, or at least I don't have any way to find that out now, after the fact -- but if you look at a few ITM decks elsewhere for examples, you will find deep strikes that still have some time premium in them. Not that it really matters to this ballyhooed SPX stuff. I was only describing an alternative way to sell a position for more than its apparent cash market value while simultaneously making 99% sure it will still get called away by expiry -- I hadn't really thought about the interest earned part, which you're quite right to introduce into the equation because of the huge amount of money on the line in the SPX case. I can't wait for September 18th to get here to put an end to all the overanalyzing -- it reminds me of a Roswell debate