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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: Steve168 who wrote (1040)	7/13/2004 7:52:38 PM
From: Steve168	Read Replies (1) \| Respond to of 1064

I received below email and wonder if QQQ puts are considered "index options"? According to below email, any index options expiring $0.01 or more in the money will be automatically exercised. ------------------ Thank you for choosing Ameritrade. We just wanted to remind you that Friday, July 16 is the last trading date for July equity options.* We follow the Option Clearing Corporation's (OCC) thresholds to automatically exercise all long equity options positions that are at least $0.75 in-the-money. The price is based on the "composite" or "consolidated" closing or last sale price reported by the OCC's price vendors for underlying security prices on the final trading day prior to options expiration. To request the exercise of your options outside of these thresholds or to decline an exercise, please call an Ameritrade® Client Services representative at 800-823-2835 prior to 4:30 p.m. ET on July 16. Effective September 18, 2004, automatic exercise for equity options will be reduced from $0.75 to $0.25 to reflect changes made by the OCC. Any option that is in-the-money by $0.25 or more upon expiration will be exercised. Index options will not be changing, any index options expiring $0.01 or more in the money will be automatically exercised. If you do not have sufficient cash, positions, or buying power to cover any options exercises or assignments, please wire in the necessary funds or close your position prior to the close of market on July 16. Ameritrade will not automatically liquidate these option positions for you, but does reserve the right to liquidate on the final trading day before expiration if the situation warrants. Please be aware that market conditions could dictate a forcible sellout in your account at any time, with or without notification, regardless of your intent to cover the amount due.