Ascend (ASND) Traders Message Board

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Technology Stocks : Ascend (ASND) Traders

ASND 199.47

+1.1%

3:59 PM EST

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To: Walter High who wrote (224)	9/22/1997 11:05:00 AM
From: kajtek	of 369

It is not always so rosy and do not count on broker to cover it and keep the difference because there maybe no profit. If the option expires in the money then your broker exercises it automatically but you are responsible to cover it. Lets make a bad scenario and say you had puts with strike 60 and stock closed at 55. Your broker exercised it and then asks you to buy the stock so he can put it at 60 to the put owner. You have to have the cash to buy it at whatever price you can get it on Monday. If during weekend there was takeover offer and stocks opens at $70 you have to buy it at $70 and give it to your broker. The same is with calls if it expires in the money and your broker exercise it you have to have money to buy it at the strike price but if on Monday stocks tumbles you may got less than strike price and loose.

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