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

To: Madpinto who wrote (713)	2/18/1998 1:53:00 AM
From: ----------	Read Replies (1) \| Respond to of 2241

I totally agree. That was its' intent, to fairly settle options at expiration. I called the firm I trade with today & asked them what was their automatic procedure. It was just as I thought and have experienced. Absent any instructions from the customer, Equity options 1/2 point or more in the money are exercised & settled for cash. Instead of getting a trade ticket saying I sold one XYZ Jan 100 call option for $1.00, I get a ticket that says I sold 100 shares of XYZ at $101. I have an in the money option in my cash account. Just for grins, I'm going to sit on it through the week. It is my option buying account. There is no marginable equity in the account,as options have no margin value. There is no money market, just a couple options positions. If stock shows up in my account, I'll GIVE you my house. That's a promise. Because if they purchase stock in my account without my authorization when I have not signed anything saying they could; I'll be moving to my new home in Beverly Hills. Doug