Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 215.65

+0.3%

Dec 29 3:59 PM EST

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To: AK2004 who wrote (103225)	10/18/2003 5:04:56 AM
From: TGPTNDR	Read Replies (1) of 275872

Albert, Re: < My understanding of the option contracts is that the official expiration is Saturday. Most of the brokers set their own deadlines since they do automatic exercise of the options.> Yes. The option does expire Saturday and the brokers can set their own deadlines. I've not called them to require settlement on out of the moneys for 2 years or more. Doesn't make much sense if you're at a computer around closing time anyway, you can make your own trade. But there was a time when I was perpetually on the road from about 2:00 Friday 'till after market closed and found myself burned by the last couple hours of market trading. I can't recall ever asking for settlement rather than delivery, but I'm pretty sure I remember being told that if I did ask for settlement the price I'd receive would be Opening price the following Monday. So, for a $10.00 option, the seller would receive $10.00 from me, My broker would get the stock, and I'd get the price of Monday's open. It never made a whole lot of sense to do it that way as I'd come to the conclusion that openings were very frequently lower than higher, followed by trading up. I'm reasonably sure I posted on the original AMD thread a time when I specified delivery on Saturday and could probably find it pretty quickly. Seems to me it was during the run-up of Athlon and the close was just below my strike price for automatic settlement after AMD had been well above strike. As I remember the price action in those days there can't have been too many days that filled that criteria set. In looking at a chart of AMD it looks like it could well have been March '00. If March it would have been a $50.00 strike on March 17th and there should be a post of mine on the old thread within a couple days of that. -tgp

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