Thursday, May 21, 2009

RE: [TheOptionClub.com] strattle



It depends on how far it moves.  

 

If it moves past the short strike (i.e. more than 10 points), no you would not have to take any action.  However, you might skim a few points if you did (and you would save the $15 fee charged for exercising an option.

 

If it moves less than 10 points, NOT past your short strikes, you would need to close it.  Otherwise, you ITM option will be exercise and you will have ‘pin’ risk.

 

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of paul7313
Sent: Thursday, May 21, 2009 10:17 PM
To: OptionClub@yahoogroups.com
Subject: [TheOptionClub.com] strattle

 




buy atm; call+put
sell + - 10 call+put
stock price moves from atm at expiration

do I have to close anything? or just let expire?

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