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On 07/17/98 16:44:32 you wrote:
>
>Dave,
>It would help if you gave some details such as the stock
>the strike and expiration. Some of us might be tracking that
>stock and have fundamental or news related reasons. But without
>the specifics you're asking for too general a comment.
>Such as: American style options allow for early excersize and
>there might have been a dividend involved which, on ex-dividend
>date, makes the opton worth excersizing.
>Also how far from strike is 1.25 points?
>Regards,
>Stan Rubenstein
>
>----------
>> From: pressdl <pressdl@xxxxxxxxx>
>> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>> Subject: Re:OPT-Assignment
>> Date: Thursday, July 16, 1998 9:41 PM
>>
>> 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
>
>
I truly apologize for taking so long to answer, we have been slammed and with my marketing guy in Hawaii, I have been
churning out 19 hour days. To begin, 1.25 points is 1 1/4, or 125US$per contract, so if the strike is 60, that would be 58
3/4 or 61 1/4. All early excercise examnples I gave are in American style options, since there is no early excer. on
European. In addition, if you need help with the concept of Reversal/Conversion trading examples for options I will help
you out, all option theory must be based upon these principles for pricing, no if's ands or buts. if you can grasp this
concept, it is something that will help you in trading options, whether futures or equity, or index. I have a few
worksheets from a training course I taught at my old employ, please request them singularly, I can't post them. Feel free
to ask more questions...I do not mind sharing. Good Luck, and please ask for help if you need it, in the options game
there can be no losers........Goog Night- David C. Gennrich, Mundi
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