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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Trader J who wrote (12226)	4/5/1999 9:07:00 PM
From: LTK007	Respond to of 56535

I take this from the CBOE web-site that has a good education support for newbies,as I am.But the vast majority of option traders do not wait to expiration day but are actually just trading,often day trades--for instance you can buy an option at 1 dollar in the morning and sell it for 2 dollars an hour later--but as with stocks ,liquidity is a neccesity in this kind of options trading << The buyer of an equity call option has purchased the right to buy 100 shares of the underlying stock at the stated exercise price. Thus, the buyer of one XYZ June 110 call option has the right to purchase 100 shares of XYZ at $110 up until June expiration. The buyer may do so by filing an exercise notice through his broker or trading firm to the Options Clearing Corporation prior to the expiration date of the option. All calls covering XYZ are referred to as an "option class." Each individual option with a distinctive trading month and strike price is an "option series." The XYZ June 110 calls would be an individual series. >>

To: Trader J who wrote (12226)	4/5/1999 10:36:00 PM
From: William G. Murray	Respond to of 56535

TJ, On expiring options, the brokers I've used will typically give me a call early Friday (expiration day) if I've not been active in my account to "remind me" that I hold an expiring position. I've also been advised by the same brokers that near the end of the day, they will endeavor to close the position if profitable after commissions rather than left to expire worthless. (The key word is "endeavor".) B.M.