Ricky--
On each of the days prior to expiry you actually have the option to either close or not the position—all depending on the actual cash and market. However, on expiry you have no choice and you are at the absolute mercy of the settlement print. So the hassle might very well worth it!
~BBen
--- In OptionClub@yahoogroups.com, Ricky Jimenez <rickyjim@...> wrote:
>
> On Wed, 24 Mar 2010 14:20:46 -0000, "TheOptionClub"
> <chris@...> wrote:
>
> >For what its worth, my experience has convinced me that holding
> >near-money short options on these cash index products through expiration
> >is so dangerous that I simply will not do it and am careful to close all
> >short options out no later than the Wednesday of expiration week.
>
> The contrary view is that over time, the gains and losses from holding
> to expiration cancel out so it is not worth the hassle to close early.
>
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