SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Tai Jin who wrote (722)2/19/1998 7:15:00 PM
From: Alex Harrington  Read Replies (1) | Respond to of 2241
 
If the option is automatically exercised the answer should be 2.

You open an option position with the purchase (or sale) of an option. You close an option position with the sale (or purchase) of the option. If the option position isn't closed and is in the money it will be exercised. (With the exception of European style index options that are settled for cash.)

If a put option at expiry is exercised and you don't own the stock, you will be short. I think there are details worked out with your broker as to what you will be allowed to do (i.e. can you have a short account etc.)

That's my understanding FWIW.

Alex Harrington



To: Tai Jin who wrote (722)2/20/1998 11:41:00 AM
From: broken_cookie  Read Replies (2) | Respond to of 2241
 
Tai,

You aren't obligated to exercise the option, but, if it's in the money, you have to specifically inform your broker that you DONT wish to exercise. Some brokerages may not allow you to do this.

There is some contention about this on this thread. You should definitely check with your brokerage about their specific policies.


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News