<p>“When you are long options, you don’t get assigned. You exercise.”</p>
<p>Schwab has “exercised” it for me without asking me in the past. The calls were in the money and at expiration, the stock was purchased.</p>
<p>Here is something from etrade:</p>
<p>For long option holders, equity and index options $0.01 or more in the money will be automatically exercised or assigned for you.1 You will need to let us know if: </p>
<p>You do not want us to automatically exercise equity options that are $0.01 or more in the money.</p>
<p>This means that the 145 call in the money will be exercised and the put will be assigned. Unless you tell them you will have double the amount of stock.</p>
<p>Right, post 3861, you were automatically exercised. You were not assigned.</p>
<p>Post 3862…your interpretation is wrong. The puts closed otm and will not be exercised automatically.</p>
<p>NJres, it is possible you are going to be assigned in those calls. I would say…well under 10 percent.</p>
<p>I misunderstood what you wrote, so I edited my post.</p>
<p>either way I own it unless I tell them not to buy it - yes I realize that I don’t have the obligation to buy it. How is 145 otm, its atm?</p>
<p>rom CBOE website:</p>
<p>Will you be assigned on an equity option contract that expires exactly at-the-money?
Some professional traders will exercise an expiring call or put that is exactly at-the-money, therefore assignment on such a short contract is possible.</p>
<p>No you don’t own both either way.</p>
<p>At 145, the brokerage firm will not exercise anything without your consent.</p>
<p>You can’t be assigned anything unless you are short it and if you are short it, you don’t have control. </p>
<p>Only options that are in the money by .01 will be automatically exercised. If you are short an option that is .01 itm, you still may not be assigned, because some holders of those options may tell their brokerage firm not to exercise those options.</p>
<p>Just because there is an automatic exercise doesn’t mean the person owning the options has to exercise. He could tell the brokerage firm to decline. </p>
<p>A call and a put with the same strike price and expiration date can not both be in the
money. </p>
<p>Only one side will be automatically exercised unless the stock closes exactly on the strike price. Then neither will be automatically exercised.</p>
<p>“This means that the 145 call in the money will be exercised and the put will be assigned. Unless you tell them you will have double the amount of stock.”</p>
<p>This is wrong. This is what I am commenting on…</p>
<p>The terminology is wrong. What is going to happen is wrong.</p>
<p>NJres, I reread your post again.</p>
<p>I don’t get it.</p>
<p>If you are worried about the calls expiring worthless…</p>
<p>Why not just sell the calls for .30 Thursday, and you are out instead of gambling on after hours activity?</p>
<p>You make more money just selling the calls. Your way, you gave .10 away.</p>
<p>There was a lot of volume in the 145 calls today. If you check out the volume of the various calls, you will see tremendous volume in various series. Many dividend plays today.</p>
<p>I can’t believe people would trade the 145 calls as a dividend play…
Really risky stuff…</p>
<p>Ok, it looks like about 17 percent of the 45 calls were exercised. Open interest dropped about 30,000. </p>
<p>A little more than I thought.</p>
<p>Good luck, NJres. </p>
<p>It would be a nice win if you were assigned.</p>
<p>There were thousands of calls that should have been exercised that weren’t among the various seriers of options.</p>
<p>I was exercised. Sold 500 SPY at 145. Sometimes you get lucky.</p>
<p>After 4pm Thursday there was still time for SPY to go up a lot; What if a “deal” had been struck? SPY could have shot up to 147 making big money for a long option holder. Instead they had to settle for selling at 145.30 or 40 and exercising their call. That is the only trade I see.</p>
<p>Very nice. 30,000 calls were exercised out of 175,000. </p>
<p>That is pretty damn nice.</p>
<p>I contacted both schwab and etrade. On the put that you sold you can be assigned at any price but it is not automatic and would be stupid above 145. The call at 145 will not be exercised automatically until it is at 145.01 at any time until 5:00 pm but can be stopped by calling them. Its pretty irrelevant to me as I never hold onto the calls or puts to expiration unless I want to own the stock which has happened once in three years.</p>
<p>That is what I said.</p>
<p>You should have exercised your spy 128 calls. Yesterday.</p>
<p>Looks like you left a buck on the table.</p>
<p>Remember that for the March expiration.</p>
<p>Same with the qqqs.</p>
<p>At least the qqq dividend is smaller.</p>
<p>I should have sold them. Sometimes I make mistakes but I think it will still be ok by the 19th. I’m still up significantly on both spy and qqq. I don’t generally have large positions in anything except if I own aapl which I currently don’t.</p>
<p>Even if you don’t sell, you should exercise something that deep in the money a day before the expirations that have the dividend issues. Mar, Jun, Sep, and Dec.</p>
<p>You are doing well. You will know for next time. Everybody makes mistakes. Everybody. </p>
<p>I would love for Aig to close above 35 today. I am short the 35 and 36 calls that expire today.</p>
<p>I will sell more puts if the stock closes above 35.</p>
<p>I have made this mistake before</p>
<p>Doct, you must feel naked not owning any aapl. :)</p>
<p>Yes I do and I get the shakes because I have the urge to buy it.</p>
<p>Lol…</p>
<p>Got any good recommendations - I’m thinking along the lines of aig, orcl - maybe c</p>