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To: nihil who wrote (77060)	11/9/1998 9:44:00 AM
From: PMS Witch	Respond to of 176387

More on selling puts. Yes, the OSC is everyone's counterparty, but getting assigned seems random. A few years back I had was short a couple of hundred contracts of CSCO puts, while a client was short only one contract. With the underlying stock price dropping, seven of my contracts were exercised, my client's one contract was exercised, and half of my husband's contracts were exercised, along with what seemed random quantities of client contracts. Within a couple of weeks all contract were exercised months before expiry. At the time, we were caught in a bit of a trap: the stock we bought would be blended with the stock we already owned and to sell the cost base would be so low that the taxes owed would be greater than the profit on the new shares. (We still own the shares: CSCO @ $11) Prepare for the worst and hope for the best. My original response on this topic was to encourage the poster to be careful. Look at the downside as well as the profit potential, and to be prepared to weather some storms. I used my own experiences as an example of what COULD go wrong. Survival is more important than reward. Happy investing.