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

To: bogumil who wrote (1649)	9/29/1999 6:32:00 PM
From: OX	Respond to of 2241

brokers can have more restrictive policies, but the std is .75 ITM calls are automatically exercised. you have to have $ or margin to buy the underlying at the strike (i'm assuming a stock here, not a cash settled index of course). I've heard of some brokers willing to fwd the margin assuming you want to sell right away, but you have to tell them that, but if you're not around to tell them in the first place... it's a good idea to check w/ your broker before this ever becomes an issue.

To: bogumil who wrote (1649)	9/29/1999 11:42:00 PM
From: KevinD	Respond to of 2241

B or C depending on cash in your account, your brokers rules, your specific instructions to your broker. Best bet: Don't go on vacation over an expiration date if you hold options that expire then unless you don't care what happens. Sell them before you go.

To: bogumil who wrote (1649)	9/30/1999 12:25:00 AM
From: Madpinto	Read Replies (1) \| Respond to of 2241

First of all, it depends on whether these are equity or index options. If they are the latter, you will get the parity value in cash without doing anything more. With equity options, the options will get automatically exercised if the finish at least 3/4 in the money. This SEC rule is universal from brokerage to brokerage. If you don't have the money to buy the stock the following week, you get a margin call. The brokerage house will sell your stock if you do not meet the margin call. If the stock is halted at expiration, the exchanges usually take the position that the stock price cannot be identified and leave it up to you to exercise (no matter how far in the money you believe the option to be.) Although I believe everything I wrote to be true, I suggest you call the CBOE at 1-800-OPTIONS to get specific advice when making trading decisions.