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Technology Stocks : Oak Technology (OAKT) -- Ignore unavailable to you. Want to Upgrade?

To: AreWeThereYet who wrote (3673)	12/1/1997 3:34:00 PM
From: J.S.	Read Replies (1) \| Respond to of 4335

Ac Not true. If OAKT dips to about 7.5 (even for a long time) you will not have stock put to you since the owner of the put would fare much better by selling the put and taking advantage of the time value. If OAKT goes down to 7 intraday and then jumps back up to 7 5/8 say buying at 7.5 is a good deal especially if you are given a premium to boot. Puts are generally excercized when they are deep in the money or close to expiration. Yes if oakt slips to 5 then you get put well before expiration. That is the risk. However, one could keep writing calls at 7.5 on the purchased stock until you are called at 7.5. You have made a hefty profit by now (with the collected premiums) and you start all over again. Now if OAKT goes down to 3 then you are in trouble. Any chance of that happening without total economic collapse? Joe