Assignment (newbie)

Discussion in 'Options' started by IIAce, Oct 17, 2006.

  1. I.e. a covered call.

    My broker tells me that is the most conservative option play there is :confused: :eek: :mad:
     
    #11     Oct 17, 2006
  2. IIAce

    IIAce

    I paid 0.51 for the 25 Put and sold the 30 Put for 3.97.
     
    #12     Oct 17, 2006
  3. Did they go to penny increments? I didn't get the memo.

    I would sell the stock (closed today at 25.88) and the put (TOS bid/ask is .45/.55).

    Your cost of the stock was 26.03. You can close the rest of the position for 26.33, a 30 cent profit, which might cover most of the commissions.

    Or, as Mo said, if you are still bullish put on the collar.
     
    #13     Oct 17, 2006