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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: NateC who wrote (484)	2/9/1999 9:48:00 PM
From: dealmakr	Respond to of 2317

Nate, The particular play would be on expiration day to lock in a profit if in the money. Example Long 100 put Short stock @ 98 You could either trade out of your option position which is in the money or tell the broker to exercise the option. This would cause a buyin of your short stock position and would be put to the writer at the strike price of 100 for a gain of +2. This is a play at the plate type of trade and should only be used when there is excessive slippage. You can use put writing for covering shorts. Example Short stock @ 50 Short 45 put If stock is below strike price of short put on exp. Your short position in the equity will be bot in to cover at a gain of 5. If above the strike you keep the premium. A good point of reference is this site. The master also sells some good books. optionstrategist.com Good Trading Dave