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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 (724)	2/20/1998 11:59:00 AM
From: broken_cookie	Respond to of 2241

Doug, <<<In about 1-3 years, you should own the firm, or at least its' cash value.>>> I would love to either own or to have the cash equivalent of Salomon Smith Barney. BTW, you don't buy options, you buy contracts. Why do find it hard to believe that the option (in the money) is exercised? In your scenario, the option is exercised and the firm either sells or buys the stock to obtain a cash position. I'm going to ask you again. WHO DO YOU TRADE WITH?????????????? I am also interested in the fees involved in the underlying stock transaction. It would be advantageous for me sometimes to let the position settle. And when does the stock sale/buy take place -- the following monday? Options can be traded until 4:02PM but stocks stop trading at 4:00PM. Alot can happen over the weekend. Are you guaranteed the Friday's closing price or do you take your chances? I am 100% positive about automatic in-the-money exercise being the normal settlement. Until this debate, I thought it was the ONLY MANDATORY policy. If you really have a firm where this policy is in effect, I may want to open an account. If you see my post to tai, you will note that you may let in the money options expire without exercise if you specifically request it. You will then receive zip but won't be long or short the corresponding stock.