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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (2885)	4/20/1998 7:24:00 PM
From: Spots	Read Replies (1) \| Respond to of 4969

AT, there's SUPPOSED to be an automatic execuation for any option that's expiring more than a small amount (I think 1/4) in the money. BUT I wouldn't trust ETrade, especially if they "don't know." Actually I believe the auto execution is supposed to be done by the exchange, but that's a vague memory of mine. I'd recommend that you call ETrade and insist on obtaining the auto-execution, and if it didn't/doesn't happen they should make you whole on it. An expired option is worthless; there's no such thing as in the money after expiration. It's scary that ETrade "doesn't know."

To: AlienTech who wrote (2885)	4/20/1998 8:56:00 PM
From: steve goldman	Respond to of 4969

You're joking, right? Options that are worth $5 do not just expire. Believe, if you didnt want them, you're firm would take them. 5 bucks is a lot of money. The rules are that options in a customer account 3/4 point in the money are auto-exercised and options for firm accounts 1/4 point in the money are autoexercised. They are trying to calculate the average commission charge. Nonetheless, if you had 30 options in the money 5 bucks, you should now have 3000 shares (unless there were some odd lot splits) in your account and you should verify this immediately and sell out the stock. Also, since they exercised the stock, meaning you bot it at the strike price, 3000 share worth x strike price, you better make sure you have buying power to take in the stock, else you will have house calls. As well, don't ride errors like that. If you meant to sell out the options and now didnt, i would recommend cleaning out the position, take profits and move on. Dont play errors. Regards, Stev@yamner.com