[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

re: OPTN IRRIDIUM



PureBytes Links

Trading Reference Links

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.