CNBC

Some analyst saying that the US economy is going to collapse, and the rest of the world is going to have much stronger economies...at the same time.  Only half of that statement can be true - CNBC guy just called him on it.

How do these people get jobs

Comments

[Big Doggy]

Your calls will be automatically exercised. However, it is my understanding that on an options expiration you don't have to come up with the margin until the next day - meaning you can sell the stock on monday and won't get a call. That being said, I wouldn't want to own GS over the weekend unless you are in it for the long haul, better off to just sell it at the close - you'll get parity for it...

[Tom]

Haha...that's pretty funny. I believe they will try to exercise the option if it is in the money by over .05. Now...if you don't have the equity to purchase the stock outright... I'm not sure what happens.

[Dover]

Answer me this. If I held one $170 GS call that expired today, and the stock closed at $171, would I need to pony up (100 shares * $170 strike) = $17k to exercise the options? Or would they execute in a manner such that you would just receive the profit of ($1 over strike * 100 shares) = $100.

I’ve got a buddy at work with this question, and I am not sure of the answer. I have never seen an option through to expiration. I usually sell it for a loss well in advance.