Charles, <ITWO> puts in the money. In that case when it expires and you gain, your broker transfer the money to your acc. Questions: 1/ in that case do you pay trade commission to close your puts.
I am actually short ITWO, rather than owning puts. I have never held in-the-money options until expiration, instead selling them beforehand. I am not sure what brokers typically do at expiration with in-the-money options, if not given instructions. I believe that some will execute them (rather than selling them.) However, I would not want to leave this in the brokers' hands, as they might forget about them (due to incompetence), and allow them to expire, in which case you would lose the money.
2/ when their is "ask" means puts/calls available for me to buy.
Someone wrote that the option specialists must fill ten contracts at the bid/ask prices. I don't know if this is true, as someone else disagreed with him.
3/ do you think about premium in BFIT in-the-money puts is relatively low (writers more confident that it will expires useless or at buyer's loss).
I'm not sure how to make those judgement calls. In any case, I don't really worry about what other people think will happen.
(I covered ITWO at loss to short more BFIT too early)
Maybe you and I can start a club for people with bad timing.
Your questions are good ones, and I'm sorry that I can't offer more concrete answers. |
