SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Option Spreads, Credit my Debit

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jjs_ynot who wrote (1374)4/16/2000 11:17:00 PM
From: rkral  Read Replies (1) of 2317
 
dave,

How likely is it that assignment will occur before expiration if I am short DITM options?

Are puts more likely to be assigned than calls?

I am exploring the possibility of establishing reverse ratio put spreads to provide downside insurance on common. The spread would involve shorting a DITM put to finance most of the cost of two long ITM puts. The insurance would be relatively cheap and would not limit the upside ... but it means nothing if the risk of assignment is too high.

Regards,
Ron
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext