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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 163.32+2.3%Nov 21 9:30 AM EST
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To: Jim Willie CB who wrote (61383)1/11/2000 11:37:00 AM
From: phatbstrd  Read Replies (1) of 152472
 
JW jmac..re options assignment!

From the OCC, Options Clearing Corp., "OCC assigns in standardized lots to Clearing Member accounts that reflect the writing of options identical to the exercised options. If exercises are assigned by OCC to a Clearing Member's customer's account,the Clearing Member must then ASSIGN them to customers maintaining positions as writers of the exercised option series. The rules of the options markets require their member firms to allocate assignments to customers either on a RANDOM selection basis or on a FIRST-IN, FIRST-OUT basis and to inform their customers which is used and how it works. Regardless of the method used, option writers are subject to the risk EACH day their options are exercisable that some or all of them may be assigned."

jmac, this has nothing to do with spreads! I've personally exercised(read TAKEN)lots of stock during the years; Who do you think I took it from?? I don't know those people either cause it's RANDOM! That means it may or may not happen.
Strategies to protect one's self on the downside do involve risk and ALL the possible outcomes MUST be weighed. Almost all of the exerising I've done were DIM, not ATM. Most INVESTORS not TRADERS using option to build a long term position would exercise DIM also, so the odds are increasing that the writers of DIM will have their stock TAKEN.

The brokerage fimrs allowing options should have provided the booklet "Charateristics and Risks of Standardized Options"

Just want the best results for All, Phat
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