Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: rhet0ric who wrote (11237)	4/14/1998 7:44:00 PM
From: soup	Read Replies (1) \| Respond to of 213173

>One thing I don't understand (and this refers to Linda's response too) is how your options wouldn't get exercised. Doesn't the person who wrote them have to have either the shares on hand, or enough cash to buy them?< I think you have to give your broker instructions otherwise, if you take no action, they will expire worthless. I was pleasantly surprised that Schwab offered a "dead man's switch" arrangement. Regarding the decaying time value, I picked up mine a few days ago at 1 3/8. Now they are 2 1/8. With only a few days to expiration, there wasn't a lot of time value to begin with. I got these short-term units because I think earnings will surprise in the upside and there will be a pop in the stock price. However, I believe that there will be further good news over the next few months and don't want to sell off part of my core position. soup

To: rhet0ric who wrote (11237)	4/14/1998 10:06:00 PM
From: Linda Kaplan	Respond to of 213173

Rhet, Don't trade options till you understand them. The rules are that if they're in the money more than a small fraction at expiration time and you still own them, your brokerage will exercise them for you. You will not have a choice unless you sell them. All the brokers have to do that. I get a letter from Brown & Co about this every month. I don't actually read the letter any more, but they send it out as a courtesy if I have any options near expiration. If you were holding the options you'd probably get such a letter from E Trade. Since you're not holding any options in their final month, you're not getting these notices. Linda