I had bought call options a long time ago on NWS which expire tomorrow..they are the Oct $22.50 Calls which I figured would expire worthless and out of the money.. I just got back from the hospital and I looked at Yahoo and saw that NWS closed at $21.92. But then when I looked at my account they show the last price at 22.50. Can one of you professional traders please tell me what is the correct closing price of NWS please and also tell me how much in the money the option has to be before it gets automatically exercised? Thank you, Handsome
tomorrow you can just sell the calls . . hopefully for a profit, unless you want to hold on to them and see if you can make a larger profit considering how it might keep climbing higher before friday . . anyways IF you did buy the calls, they can't be automatically excercised seeing how you would be the one excercising them, right?
I think I read somewhere here that if your call options are in the money by a certain amount and your not around to sell them to close them out that they will be automatically exercised for you on expiration day but maybe I am thinking of something else.
New rules go into effect this expiration. Options in the money by five cents will be automatically exercised. If this happens to you and you don't own the stock, your broker will sell them short in your account. You can sell the options tomorrow or instruct your broker not to exercise them.
Thanks a lot...I am hoping it will go above $22.50 so they will be worth something for me to sell them. I have to be at the hospital early tomorrow but I hope I can get back home before the market opens so I don't miss any upswing into the money if there is a upswing.
Real traders don't go to the hospital, or eat lunch. Sheesh, kids these days. Didn't Bud Fox and Gordon Gekko teach you anything?
Exactly . Besides, why doesn't he just setup a stoploss-sell order or a limit-sell on the calls, for the time he's out. He can cancel them when he comes back from the hospital.