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

To: Taby who wrote (58567)	1/21/2000 10:50:00 PM
From: cthruu	Respond to of 58727

Your option gets exercised and you buy the stock for the strike price. For example, If you are holding a $100 call (one contract)and your option is $10 in the money, that means that the stock closed at $110. You get a phone call from your broker on Monday that you bought 100 shares at $100 each for a total of $10,000 plus commissions. Assuming the stock is marginable, you need $5,000 in the account. If you do not have enough money in the account, you get a margin call. Of course, you can sell the stock on Monday morning and if your broker cooperates, you can keep the profit provided the stock moves up. You will be paying commission for stock trade instead of option trade. Regards: GP

To: Taby who wrote (58567)	1/23/2000 1:32:00 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 58727

It depends on your broker and your agreement. Most will NOT exercise the option unless you tell them to. If your broker is good and takes care of you, then he will exercise it and you will buy the underlying stock. I am assuming it is a stock option and not an index option. If it is an index option, then you just get the money deposited in your account. My broker expects a call as to if I want to exercise it or not by Friday's close so you better get on teh phone and find out!!! Each broker is different but if you read the CBOE site, nothing is automatic. You should tell them you want it exercised or you "COULD" be out of luck. Good Luck, Lee