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Technology Stocks : Apple Inc.
AAPL 278.79-0.7%Dec 5 9:30 AM EST
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To: rhet0ric who wrote (11187)4/14/1998 6:40:00 PM
From: soup  Read Replies (4) of 213173
 
rhet0ric:

I just checked with Schwab (other brokers may do things different) regarding some April $25 calls I have.

1) I can *trade* them up until 4:00 PM Friday the 17th.

2) I can *exercise* them until 5:30 PM Friday the 17th.

3) If I choose to do nothing, and they close out more than 3/4 point in the money, Schwab will automatically exercise the options and subsequently sell the stock (with double commissions - nice for them) on my behalf -- unless I give them instructions to the contrary.

4) I was worried that with 13-14,000 open interest, that everyone looking to sell their shares prior to expiration would force the price down below intrinsic value (difference betweeen stock price and exercise.)

The broker said he had never seen that happen, but that he was fairly young. However if the price *did* fall below intrinsic value I or Schwab would just exercise the option and capture the spread that way.

5) He also said, somewhat amazed, *that he had never seen an open interest this large.*

Oy.

soup
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