Ludovici

CVS Caremark: A Prescription for Profits?

Please forgive an elementary question. In explaining your options strategy, here with CVS as in several of your other posts, you write, "If CVS shares are above $30 (+13.2% from our starting price) on expiration date - Jan. 15, 2010, .... Your $25 puts will expire worthless (a good thing for you as a seller)." But aren't the options exercisable at any time until they expire? So that if the price dips, they could be exercised long before expiration date, right? In the course of a year, the price might well decline and then rise, I would imagine.