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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: ---------- who wrote (709)2/17/1998 4:38:00 PM
From: trev  Read Replies (1) | Respond to of 2241
 
I was following this thread a while back + found it really
useful - haven't been following for a while so forgive me if
this is off topic a bit.

I have a question concerning what happens to the options
on a stock that falls below $5 and thus becomes unmarginable ??

trev



To: ---------- who wrote (709)2/18/1998 12:42:00 AM
From: Madpinto  Read Replies (1) | Respond to of 2241
 
Doug, you have to remember all the prospectuses and paperwork they sent you before you opened your options account. It may seem like you have risk if your firm automatically exercises your options, but think of how you would feel if you forgot to exercise your $30 in the money calls. IMO the auto exercise does more good than harm.


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