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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: geewiz who wrote (12362)	12/25/1997 3:12:00 PM
From: Orhan Birol	Respond to of 18056

Art, You will not be called most of the time until the last day, unless the option you sold is so much in the money that it sells at a discount at times or at parity and it is going x-dividend in the next day or so. It is the option of the call buyer to call the shares. Of course all in the money calls are exercised in the last day by the professionals who do not pay any commissions. In case of the big merger news-it is irrelevant whether you get called immediately or not; chances are you won't. To get out of the stock you will have to buy back your call, at a loss. If you wait for the other party to exercise you will have little to gain except the buy-back commissions on the option and maybe a small premium. Orhan