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

To: Tai Jin who wrote (729)	2/20/1998 4:30:00 PM
From: broken_cookie	Read Replies (1) \| Respond to of 2241

tai, I have always sold them. Here's a case when you want the option not exercised. You own 5 XYZ calls that are 1$ in the money. You plan to exercise the option and own 500 shares of the stock. News comes out after the bell; XYZ warns of much lower than expected earnings. You figure the stock is going to get a 20% haircut on monday. YIKES! Since the option expires on Saturday, you have until 6pm EST to tell your broker that you dont wish to exercise. Check with your broker to find out if this is allowed. PS It's always a good idea to specify your intentions either way.