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You have touched the subject that was long on my mind, but I did not know
who to ask about it. Thanks for the information.
Now my question: I have the stock (long) and the put (long). Stock stops
trading and never opens again (then de listed). Whom I will sell my stock
(remember, I have the put)?
Thanks again,
Yours, Alex.
At 05:16 PM 8/19/99 -0500, THE DOCTOR wrote:
>Just a word of caution to anyone with open August PUTS in
>Irridium. The option exchanges are currently scheduled to
>NOT reopen trading in the options(August)or otherwise unless
>the stock reopens. There may be an attempt to relist the
>stock as "billboard" issue so as to establish a possible
>price ... but as of now there is no pricing information
>available. As there is stock available the OCC will allow
>the exercise of options and will automatically exercise the
>ITM options at the COB tomorrow. As such if you are long
>ITM puts you will end up shorting stock that you currently
>cannot borrow so as to cover the trade. You will, in
>effect, have to carry the short until such time as the stock
>either trades or is "legally" delisted. If you hold the
>option positions long in a cash account you need to contact
>your broker so as to "work out" the terms for carrying the
>short stock.
>
>Just for future reference if the stock was halted due to an
>"SEC" halt(information pending)then a closing rotation could
>occur. This is not the case this time as the halt relates
>to a non SEC issue ... the bankruptcy of the company. If
>the stock doesn't reopen to establish a price this will
>continue to be a challenge for holders of later expiration
>options as well.
>
>SO IN SHORT ... talk to your broker well before the COB
>Friday.
>
>You should really direct your questions to your broker ..
>the exchange websites(currently)provide no additional info.
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