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

To: TGPTNDR who wrote (94252)	2/19/2000 11:09:00 AM
From: niceguy767	Read Replies (2) \| Respond to of 1573911

Thanks TGPTNDR: I'll attempt to reconcile our broker differences with my broker on Monday...Interesting Tuesday shaping up!

To: TGPTNDR who wrote (94252)	2/19/2000 11:57:00 AM
From: Richard Wang	Respond to of 1573911

tgptndr, Re: at that time an automatic sell would be executed unless I asked to hold the stock. Between what your broker told you, and what Niceguy's broker said, there is a striking discrepancy. I would go with Niceguy's broker for the following reasons: 1. The option board goes by the New York regular trading session prices, so 40 1/4 would be the closing price. I could be wrong, however, as the stock could go to 43 on heavy volume during afterhours session. In that case, I don't know what they would do. 2. The last trade occurred late in the day at 43, and was only for 100 shares. Generally that type of stock activity is ignored by everyone, except it is posted. It generally has no bearing on next morning's trading. If this 43 is indeed used to settle options, anyone can manipulate the option market easily. Your broker's rule would make such manipulation too easily. 3. As to the reference at the top of this page, the broker does not automatically sell your stock acquired through option expiration. You get to keep the stock unless there is insufficient margin in your account. Even in that case, they would ask you whether you want to put up more margin money before they sell the stock for you without your specific consent. My broker Brown & Co uses a 3/8 margin for automatic exercises, so the 40 calls would not be automatically exercised. I wish the closing were 43, because I have sold 42.5 puts. Unfortunately I expect them to use the 40+ as the closing, so I will be 3k shares richer on Tu. : ( ......However my option premium (money in bank) does mitigate a bit of the paper loss on the option. I also expect the loss will be erased when AMD goes back on the uptrack later next week. Congratulations on your Feb 25 calls. Richard