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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Gary Ng who wrote (94179)	2/18/2000 11:03:00 PM
From: Joe NYC	Read Replies (1) \| Respond to of 1578452

Gary, I believe he can also choose for cash settlement. That is what Schwab told me about "in the money" ones. How would that work? Someone would have to be on the other side of the transaction taking on the risk of receiving the shares on Monday and selling them on the open market. Unless Schwab somehow has open positions in their own account that they would like to close. Joe

To: Gary Ng who wrote (94179)	2/18/2000 11:18:00 PM
From: Goutam	Read Replies (1) \| Respond to of 1578452

Gary, I believe he can also choose for cash settlement. That is what Schwab told me about "in the money" ones. I agreed with niceguy767 that this is twilight zone as they are not very specific. IMHO, Cash settlement is only for the Index options. For the stock options, brokers that do automatic exercise of in money options, use the closing price to decide whether to trigger the automatic exercise or not. Once the options are exercised and if you don't have enough funds in your account, your broker will sell the acquired shares at the market price at the opening of the next market day. May be Schwab "cash settlement" with stock options means that Schwab would sell the stock at the opening price without waiting for client's order even in the case of sufficient funds in his/her account. Goutama