Not oil related but....
About a month ago I entered a credit spread on the DIA ETF.
I sold the $113 Calls and bought the $114 calls.
Ive been working the night shift so have been unable to keep up with it.
Now my calls have been assigned and have sold 400 DIA shares short and have been credited with nearly $46,000
Am I in trouble or have I just entered a short position and can still buy these shares back to cover myself?
PeakOil is You
Options Assignment
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Options Assignment
by Marklar » Fri 15 Sep 2006, 20:48:38
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Marklar - Peat
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Re: Options Assignment
by EnergyHog » Fri 15 Sep 2006, 21:43:38
Uhm, should you be flying this thing?
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EnergyHog - Lignite
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Re: Options Assignment
by joewp » Fri 15 Sep 2006, 22:06:43
Just buy 'em back on Monday.
Joe P. joeparente.com
"Only when the last tree is cut; only when the last river is polluted; only when the last fish is caught; only then will they realize that you cannot eat money." - Cree Indian Proverb
"Only when the last tree is cut; only when the last river is polluted; only when the last fish is caught; only then will they realize that you cannot eat money." - Cree Indian Proverb
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joewp - Intermediate Crude
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Re: Options Assignment
by Marklar » Sat 16 Sep 2006, 01:05:16
email i got today said i had to close the $113 options by the end of the day or face restrictions on my account.
Then i get another email saying my options were going to be excersised and i would have to sell the shares first thing monday or come up with the money to pay for the shares.
I'm assuming that my $114 call options are being excersised. I dont know why I got two emails and why they are saying different things but it looks likes since I was assigned the $113 the $114 are being excersised to cover it.
Then i get another email saying my options were going to be excersised and i would have to sell the shares first thing monday or come up with the money to pay for the shares.
I'm assuming that my $114 call options are being excersised. I dont know why I got two emails and why they are saying different things but it looks likes since I was assigned the $113 the $114 are being excersised to cover it.
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Marklar - Peat
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Re: Options Assignment
by MrBill » Sat 16 Sep 2006, 05:42:21
$this->bbcode_second_pass_quote('Marklar', 'e')mail i got today said i had to close the $113 options by the end of the day or face restrictions on my account.
Then i get another email saying my options were going to be excersised and i would have to sell the shares first thing monday or come up with the money to pay for the shares.
I'm assuming that my $114 call options are being excersised. I dont know why I got two emails and why they are saying different things but it looks likes since I was assigned the $113 the $114 are being excersised to cover it.
Then i get another email saying my options were going to be excersised and i would have to sell the shares first thing monday or come up with the money to pay for the shares.
I'm assuming that my $114 call options are being excersised. I dont know why I got two emails and why they are saying different things but it looks likes since I was assigned the $113 the $114 are being excersised to cover it.
The calls you sold will be exercised automatically by your counterpart or whoever you sold them to, while the calls you bought have to be exercised by you before they expire or on the day they expire depending on whether they are American or European options. Worse case scenario you could be exercised on and let your calls expire worthless.
The organized state is a wonderful invention whereby everyone can live at someone else's expense.
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