Tuesday, December 15, 2009

Re: [TheOptionClub.com] Debit spread now in the money....

 

well, some brokers charge a lot more for options getting exercised than commission if you close out the trade yourself, so have a look and do a bit of calculation

gis



On Tue, Dec 15, 2009 at 6:45 PM, Johnnyvogue <jmvogler@hotmail.com> wrote:
I suspect I'm making this too difficult, but here's my question.  I'm long Disney Dec 30 calls and I'm short and equal number of Dec 31 calls. The stock is now at 32.18.  As long as DIS remains above 31, is it advisable to not take any action to close this spread and let it go to expiration? I think I will be credited with $1.00 upon expiration without needing to do anything with the spread before Friday.  Am I missing something?  Thanks to all who take the time to help others make sense of this game!

John



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The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

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