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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (12065)	12/22/1997 4:57:00 PM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 94695

Real life story on writing options - Last week I wrote several lots of Put and Call options. Most of the stocks I wrote on, those option, closed at the striking price. So I felt some relief, until Sunday wen to my surprise I was assigned 12 contracts Dec 50,puts, at a time that the stock closed Friday at $50 and the option at 1/16. (the stock Bid was 49 15/16 Ask 50 1/16) So this morning I was the unhappy owner of 1200, shares at $50. The act itself was strange and I expected a downgrade or some bad news on the company this morning acompanied by a loss. BUT SURPRIESE there were good news, the stock gap opened 13/16 and I sold my shares at $51. (stock closed $51 9/16 - 13/16 today) The lesson to learn, if you write options, even at 1/16 they may assign you with the stock, and there is no guaranty that the stock will move next morning in your favor. YOU NEVER KNOW UNTIL IT HAPPENS. I hope it will help those on this tread in their decision in trading option especialy during expiration days. Haim