Post #8711 by rayvt on the Berkshire Hathaway board

If someone appears to be repeatedly personal, lean towards patience as they might not mean offense. If you are sure, however, then do not deepen the problem by being negative; instead, simply place them on ignore by clicking the unhappy yellow face to the right of their name.

- Manlobbi

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

Unthreaded | Threaded | Whole Thread (25)

Prev | Next

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 1

the option holder sends you $42,500 (per option), and you then proceed to buy 100 shares for $42,836 and deliver them to the option holder. Total additional cash expended is $336.

What is the order of things happening?
Are you sure that you get the $42,500 first?
I would think that the exchange of money for stock is simultaneous, so you wouldn't have the cash available to buy the new stock shares first.

But maybe the broker gives you a few days to designate which shares you are delivering? I have read that Etrade lets you do that. But I wonder if they would let you say that you delivered a lot that you didn't own until a day or two after the call got exercised.

Of course, in a margin account you could buy the new lot beforehand.

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (25)

Prev | Next

Announcements

Berkshire Hathaway FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.