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

To: August who wrote (4029)	12/28/1998 9:20:00 AM
From: steve goldman	Read Replies (1) \| Respond to of 4969

August...going back to the archives, huh? Tipping a hat...I am not in the position of showing anything more than I want to a market maker. It is their decision to do the trade or not. With market makers that we have good relationships with, I dont want to hurt them because that just ruins the relationship and they are increasing the liquidity beyond the current inside market anyway....but my focus is on MY clients' best interest. I think it usually works out well...if I would be hurting any market maker that gives us an AUTO system, I'd do the business 'away'. Who did buying and selling? very difficult and impossible to figure out in real time. I believe the nasd.com has the nasdaqtrader.com which offers stats on the most active firms, but outside of disclosures whena party acquires a certain size, there is no other way I know where such info is ascertainable. I'm on vacation, on the laptop in St.Thomas...just got done playing tennis with the wifey and just checking in...do me a favor and report those same questions next week...my pleasure to answer them in detail. Happy Holidays! Steve

To: August who wrote (4029)	1/10/1999 3:12:00 PM
From: steve goldman	Read Replies (2) \| Respond to of 4969

August, as per your questions: -in a non-margin account (eg. IRA), --long 100 contracts of calls $30 in-the-money (eg. strike 50, stock at 80). --also assume no other equity in the account. --one wish to exercise and sell the stock instead of selling the options out-right, due to lack liquidity and bad option bid price which are not firm anyway, a) can one instruct you to exercise the calls and immediately sell the stock (on the same day as option exercise)? Absolutely...that is a long sale, not a short sale. b) will such stock sell be treated as short sell (subject to up-tick rule), or will it be a regular sell? c) will non-margin status be a problem for exercising the call? Yes, you need the margin to purchase the stock at the strike price x 100 x number of contracts. 4) same account as 3) above, but the account owner did not give you instruction regarding the 100 contracts of calls on the Friday of expiration. What happens? **If they are in the money by more than 3/4 points, they are exercised automatically by the firm for you and OCCC regards, Steve@yamner.com