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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: RoseCampion who wrote (1612)	8/20/1999 9:30:00 PM
From: OX	Read Replies (1) \| Respond to of 2241

IRID options have effectively expired. Has anyone ever heard of options expiration being extended? I haven't been around long enough to. But settlement will have to be postponed for those to exercise (or get assigned--ouch!). There a lots of positions I wouldn't want in IRID right now; being long stock or a short puts come to mind. Here's some text from the OCC disclosure doc... "Even if options trading is halted, holders of American-style options would still be able to exercise unless exercises were restricted. (However, OCC or an options market may restrict the exercise of an option while trading in the option has been halted, and the restriction may remain in effect until shortly before expiration. See paragraph 5 under "Risks of Option Holders" above.) If the option is exercisable while trading has been halted in the underlying interest, option holders may have to decide whether to exercise without knowing the current market value of the underlying interest. This risk can become especially important if an option is close to expiration, and failure to exercise will mean that the option will expire worthless. If exercises do occur when trading of the underlying interest is halted, the party required to deliver the underlying interest may be unable to obtain it, which may necessitate a postponed settlement and/or the fixing of cash settlement prices (see Chapter VIII)."

To: RoseCampion who wrote (1612)	8/21/1999 9:05:00 PM
From: Madpinto	Respond to of 2241

The CBOE said you must exercise the options by calling your broker. The August options did not get exercised automatically, and they expired worthless Friday night if you did not direct your firm to act. The CBOE claimed they could not automatically exercise the puts due to the trading halt and not knowing what price to use. I'll bet a lawsuit comes out of this from some poor guy with the 20 puts who assumed the options were automatically exercised and ended up with nothing.