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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: broken_cookie who wrote (58345)	2/23/1999 4:16:00 PM
From: otter	Respond to of 58727

You are right. My comment in the second paragraph should have read 'selling puts' rather than 'buying puts'.

To: broken_cookie who wrote (58345)	2/23/1999 8:53:00 PM
From: Soumen Barua	Read Replies (1) \| Respond to of 58727

Suppose I buy INTC 150 put right before expiration at 10 and then it goes down to 140. If I don't do anything before expiration the brokerage firm will be worried because exercising that option would require capital that may not be in the account and the firm usually will not take the risk of using their own funds. Therefore, they may decide to sell the option instead and collect the premium. This is a theoretical example. However in a fast moving market lot of things might happen. This uncertainty is caused because that put is near to expiring and no decision has been made about it. Good luck.