Tagged Questions
4
votes
2answers
40 views
How does the process of “assignment” work for in-the-money Options?
Consider the following scenario -
I have a covered call for XYZ for this month's expiration as XYZ May 18 25 Call. On May 18, XYZ is trading for $28, with the option listed above at $3.3.
If I ...
2
votes
2answers
995 views
Difference between European and American options
Appreciate some help with a problem i am facing
OK, so first I found a put and call option with same strike price and maturity for both American-style and European-style options. I selected the ones ...
1
vote
1answer
168 views
What are my risks of early assignment?
I have started writing covered puts and calls recently. Everything I read talks about the risk of early assignment of your position, but I don't really understand how often this happens. It seems that ...
0
votes
4answers
131 views
Covered call when stock position is at a loss
when writing covered calls and the stock value decreases. Sure your calls decrease to $0 and expire worthless (the desired scenario) but your stock position can continue taking a greater loss.
so ...
3
votes
1answer
53 views
How do straddles that involve selling options protect against early assignment?
When doing a covered straddle in options trading, it involves selling put and call options when entering the straddle. But there is no way of guaranteeing that your options won't be assigned before ...
4
votes
2answers
129 views
Do investors go long option contracts when they cannot cover the exercise of the options?
Consider I want to buy some american-style call options for a particular stock, and suppose this underlying stock 'XYZ' is valued at $100 a share.
Suppose I go long (buy) 10 option contracts for XYZ ...
4
votes
3answers
192 views
Covered calls: How to handle this trade?
I bought XNPT (Xenoport) a couple of weeks ago at 6.93
I turned right around and sold the Apr 16 call. $8.00 strike and collected 1.50 in premium.
Today I get a great surprise that XNPT has rocketed ...
7
votes
2answers
929 views
What are the odds of being assigned for a long dated in-the-money call option?
If I sell a 2-year future dated call option that is slightly in the money (For example if Citi today is $5.13, I sell a call option for strike price $5.00 at Jan 2013 - today is Jan 2011), what are ...
