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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?

To: Porter Davis who wrote (960)	4/5/1998 9:13:00 PM
From: Gary McCoy	Read Replies (1) \| Respond to of 1598

OK.... I understand that the "OPEN" position is to initiate a buy or sell of contracts. --- QUESTION 1 I'm still a bit confused about the "CLOSED" position. Let's say I buy 4 May $9.00 CALLS on RGO for .35 RGO price climbs and I re-sell these calls at .75 without exercising my option. Is this when I would use a closed position. By selling these options wouldn't my TD account automatically show RGO as empty whether open or closed position was used? --- QUESTION 2 How do I go about exercising my option to buy. --- QUESTION 3 I have a pretty good understanding of buying and selling CALL contracts, but can you help me with the sale of PUT contracts. Let's use Ranger Oil as an example Say I sell 4 - May $10. PUT contracts @ 1.00 In May RGO drops to $9.00 If the owner exercises the option, do I have to buy his stocks outright or can they be sold immediately at market & just pay the difference? --- QUESTION 4 What happens if there is a trading halt for an extended period of time. Do you loose out on the option? Thanks again. Gary