SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Schiz who wrote (577)1/21/1998 11:15:00 PM
From: ----------  Read Replies (1) | Respond to of 2241
 
Ken:

You approach makes sense....with one exception. People can and do
exercise options prior to expiration.

While many use options as their primary means of playing the market,
others use them as a tool. I have had stock called away from me
6 weeks before the option expired. Why? The buyer actually wanted
to own the stock, it had gone up in price, AND it was getting ready
to go ex-dividend. So by calling it away, he/she got the dividend,
plus the stock the obviously wanted to own anyway.

Doug



To: Schiz who wrote (577)1/21/1998 11:29:00 PM
From: margin_man  Respond to of 2241
 
Ken,

The only problem is one doesn't gain anything out from this scenario
except his/her owned calls get stucked.

The calls could be exercised at anytime if the buyer already has
some profits from the calls. Who could the buyer be?
It could be one of us or option MM.

Patriot


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News