Timeline for Exercise an out of the money option
Current License: CC BY-SA 4.0
5 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Apr 5, 2022 at 18:44 | comment | added | Erik Reppen | I think the idea is that if there is a corrupt conglomerate that is allowed to be both market maker and a severely naked short hedge fund that makes a killing off of OTM expired options in a stock where they have excessive control over the price, it might be better for the squeezers to force them to buy shares by exercising instead of just buying shares at a lower cost, which, unlike options executions can be re-routed through PFOF to OTC to remove their impact on price, assuming you have a PFOF broker. | |
| Jan 22, 2022 at 19:59 | comment | added | Bob Baerker | It makes no sense to exercise an OTM call if you can buy the stock at a lower price. Market makers may sell buyers of shorted stock call options in order to gain extra funds to meet margin requirements. That statement really needs cleaning up. | |
| Jan 22, 2022 at 13:11 | review | Late answers | |||
| Jan 23, 2022 at 1:30 | |||||
| S Jan 22, 2022 at 12:51 | review | First answers | |||
| Jan 22, 2022 at 22:49 | |||||
| S Jan 22, 2022 at 12:51 | history | answered | yfdgvf asdasdas | CC BY-SA 4.0 |