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

To: niceguy767 who wrote (94246)	2/19/2000 10:59:00 AM
From: TGPTNDR	Read Replies (2) \| Respond to of 1573689

Niceguy767, Re: 30 minutes and 5 different ... I repeat that Fidelity stated to me (in a recorded conversation) that the $43 trade was valid and would be used to settle options. $42.50 will expire, $40 will be exercised. I find it interesting, but not surprising, that two brokers have different policies on the subject. CBOE is not specific on the subject, and I think there is wiggle room for the brokers and traders to line their pockets a little here. (Though ~ 6% for one weekend is more than a little.) He then told me that upon exercise I own the stock 'till first trade Monday morning, and that at that time an automatic sell would be executed unless I asked to hold the stock. I would receive the difference between my options call(well in the money) and first trade Monday. I asked him to sell 1/4 and keep 3/4(of the stock, so I'll be putting out strike price, in this case 25). We'll see how this plays out, but it seems that option trades at expiration have one variable which I hadn't previously known about which is first trade Monday. I repeat that he said that I do not have the right to demand to keep the stock, just that the firm would 'attempt in good faith' to hold it. I follow the thread pretty closely, and thank all of you for even raising the subject of $40.25 vs $43.00. tgptndr

To: niceguy767 who wrote (94246)	2/19/2000 3:08:00 PM
From: Petz	Read Replies (1) \| Respond to of 1573689

niceguy, re:<Another valuable lesson learned, the hard way...as, like you, I would happily have exercised the $40's...> Actually I'm very glad that the benchmark which determines automatic exercise is the NYSE close. If you had been able to exercise, I doubt that you'd get much over 40.5, maybe less, on Tuesday. Some people are able to exercise past 4:30. At some brokers the deadline is sometime on Saturday, maybe thats just for "members." The Options Clearing Corporation has a limit (sometime on Saturday) after which call exercise may not be requested and won't be honored. I doubt a retail customer can get anything done about call exercise or non-exercise on a Saturday, but probably brokers and house traders can. IMO, the $43 trade might have been an attempt to sucker these brokers and house traders to exercise Feb 42.5 calls. I suspect that if any of them are dumb enough to take the bait, they'll get shellac'ed. Petz