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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?


To: George Bielski who wrote (898)6/19/1998 8:40:00 AM
From: Madpinto  Read Replies (1) | Respond to of 2241
 
If you buy back your puts, you protect yourself from the stock falling below $25 today. It will cost you $6.25/contract (+ comm.) to take off your position. You have to determine if the risk is worth spending the money. You do not have to do anything if you believe the owner of the puts will not exercise (ie. if the stock stays above 25).