When your short option is assigned, you exercise the long option. Depending on your broker, TOS charges an extra $15 exercise fee.
----- Original Message -----
From: "RobertH" <robhansen5252@hotmail.com>
To: OptionClub@yahoogroups.com
Sent: Tue, 16 Mar 2010 04:33:12 -0000
Subject: [TheOptionClub.com] How Do I Get Out?
> In late February, I bought a Mar/Apr IWM call calendar at the 56 strike for 0.20. I paid $200 for this directional bet with IWM around 62 at the time. Well, the market certainly didn't go down, so I want to exit this trade. I was under the impression that if you bought a calendar spread, the most you can lose is the amount you paid. But to unwind this trade, I have to buy back the March call at $11.61 and sell the April call at $11.45 for an additional loss of 0.16. How can I get out with only a $200 loss?
>
> Thanks,
> RFH
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