Continuing the IFMX discussion and more... Message Board

STOCKTALK

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 : Continuing the IFMX discussion and more...

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Melissa McAuliffe who wrote (187)	9/13/1997 2:44:00 AM
From: Robert Graham	of 206

Just to clarify what I think, our calls wouldn't be exercised until October..right? You always have a non-zero chance in getting called when the price is near or at the strike price. The odds increase as the expiration date approaches in the last month. Look at the open interest on your option. Since exersizes are assigned in lottery fashion, the higher the open interest, the better your chances are in not getting called out. Since you have an OCT option, I really doubt you will be called out. Dramatic price rises like this can bring options to parity where arbetreurs may end up exersizing. But this will be SEPT options with little time premium left, and month out "at or out of the money" options do not have any intrinsic value, even when "at the money" compared to the time premium, so they will not be exersized. As the price of the stock moves up, the time premium will increase further buffering you from the risk in being called out of your stock. So the time premium on your option can save you. Bob Graham

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next