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3xBuBu

08/01/07 1:35 AM

#5087 RE: Y worry Murray #5085

Murray, the Put Options will expire and worthless if the stock price is above the strike price of the subject put options on the expiration date.

You won’t be assigned if the Q price fluctuates above the put's strike price during this position's lifetime. Also, the time premium is highest if the strike price is near the current stock price. Therefore, it is better off to sell puts just slightly OTM rather than selling deep in the money puts.