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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 227.37+0.3%3:59 PM EST
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To: Mike M who wrote (6491)6/18/1998 9:04:00 AM
From: Tradegod  Read Replies (1) of 164684
 
A call buyer of a current month option typically is a trader. He is looking for a trading profit on the option . If he does nothing, he in effect exercises his option, and the underlying shares are placed in his account at expiration. His account is then debited for the strike price plus the conversion commission. He is far more likely to lock in a profit by selling the option outright and pocketing the cash. In my example, the option holder would have to decide if he wanted to tie up 48000 of his own money hold the stock going into next week. I would be inclined to collect a 32000 profit and eat steak on Friday night.
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