AW: What options to sell?

[MikeSuesserott@xxxxxxxxxxx (Michael Suesserott)]

Gitanshu,

thanks for taking up my cause regarding bid/ask histories. Totally agree.

Regarding the recent INTC example,

	Intel: Stock @ 70
	Sep 55c 15.50
	Sep 65c ask 6.5
	Short spread: 9.00

The short call being deeply in the money with only very little time value
left, don't you feel if the price of INTC were to go up the position might
be too vulnerable to early exercise?

IMHO, this would obviate the whole idea of this spread. The staying power
afforded by the perceived maximum risk of only $100 would prove illusive.

Simple purchase of the 65 put would have about the same maximum risk as the
call spread, but unlimited profit potential, and no exercise risk.

Care to give your thoughts?

Kind regards,

Michael Suesserott