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

To: Tony B who wrote (31598)	8/26/1998 4:08:00 PM
From: Night Writer	Respond to of 97611

Tony B, The option exchanges don't sweep the options. The brokerage houses automatically exercise for the client at various points. PW automatically exercises at 5/8 or better above the call option strike price. Another brokerage house might have a different automatic exercise point. My guy said some one might have a good case for having their broker eat the options because they did not exercise last Friday. Unless they were instructed not to exercise the options for some reason. You have to check with your broker to find out the option policy for the brokerage company. Never count on this happening with great frequency. Many traders exercise and hold the stock until the next week hoping to sell at a higher price. Some people exercise because they only buy options on stock they want to hold anyway. Many traders retire options before x day because they never intend to hold the stock. NW