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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?

To: Porter Davis who wrote (1448)	1/12/2000 12:21:00 AM
From: Lloyd R	Read Replies (1) \| Respond to of 1598

Hi Porter. I not sure if you want to divulge your "secrets" or not, but I was wondering how the specialists actually "hedge" themselves in order to make money on buying/selling options. Do you guys every buying the underlying or is everything shorted and then you buy if the stock is called (assigned) away? Thanks.

To: Porter Davis who wrote (1448)	1/12/2000 1:49:00 AM
From: Goldberry	Read Replies (1) \| Respond to of 1598

Porter I need some info concerning option settlement on the expiry date. TD Waterhouse informs me that they will automatically complete an in the money option provided that it is .75 or better on expiration. If I have 10 contracts (1000 shs) at .50 that is $500.00 plenty of room to cover the commission in and out if naked. I am told by TD that I must inform a trader of my wishs prior to market close even suggesting by 3.00 p.m. I was under the impression that one could make this decision after the market closes possibly even the following Monday prior to the open. Could you give us your understanding and whether this is covered by any specific rules the houses must follow?