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On 07/17/98 07:49:26 you wrote:
>
>Rule for windfall profits: don't question them, take them.
>
>Now the other party maybe thought there would be a big overnight move for
>some reason, and wrongly anticipated it...
>
>Gwenn
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>
>pressdl a écrit:
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>> Any explanation would be appreciated. I had options assigned late
>> yesterday. That is the first time I had options assigned prior to
>> expiration. That was a surprise --but not nearly as much as the fact the
>> option was assigned with the stock still 1 1/4 pts below the stock price.
>> Any suggestions as to why someone would do this??
>>
>> I merely bought the stock back and wrote calls for the following month.
>>
>> Dave
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The is actually quite a few reasons for this....one may be that the put price (buy side) may have
been at a level where the conversion may have been attractive, 2> if the interst rate + carry- div
> put price it would have been quite profitable, 3. The buyer may have needed the long stock to
cover a call in his short stock...there could be numerous other reasons...hope this helps...David
Gennrich Mundi
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