Question

Discussion in 'Options' started by syd697, Nov 8, 2003.

  1. syd697

    syd697

    Here's a question about option cancellation fees:

    If I'm using contingency orders to buy or sell an option when the price of the underlying security is only at a certain level, will I be hit with cancellation fees if the underlying moves out of the range for me to buy or sell the option and the option contract ceases to be worked at that time?

    For instance, I want to buy a MSFT call option only if MSFT is trading above $26.50. If my option order goes live when MSFT trades above $26.50, what happens to my option order (if not filled) when MSFT trades back below $26.50? Does the option get cancelled and I get hit with a cancellation fee, or does the option order sort of go into hibernation until MSFT trades back above $26.50?

    Any ideas?
     
  2. i think the option would stay live so you wouldnt get a cancel fee.