Barclays iPath Series B ETN Redemption

Discussion in 'ETFs' started by BMK, Jun 8, 2023.

  1. BMK

    BMK

    This is some f**ked up shit LOL

    JO_ETN_Collar.png

    Barclays is redeeming these notes in full at the June 7 closing value, which was $54.00.

    Redemption happens on June 14 but is based on the June 7 closing value, so trading has now been halted.

    So Schwab's platform thinks the value is zero, as if it was a bankrupt or de-listed security...

    And therefore also thinks that the value of my long put is $5,300.00

    Fake numbers messin' with my account value LOL

    Also thinks the call is a naked short
     
  2. BKR88

    BKR88

  3. Cabin111

    Cabin111

    I, like you, am trying to figure out what will happen tomorrow (Wednesday). I have that covered call and am in the money.

    Any further word from Schwab, on what will happen for options tomorrow??
     
  4. ETJ

    ETJ

    Settlement memo
     
  5. Cabin111

    Cabin111

    So in layman's terms, I will get my $5,200. (strike price $52.) and the option will be exercised and get called away on Wednesday. Is this correct??
     
  6. BMK

    BMK

    Yes, because the holder of that call can then redeem the shares for 54.00
     
  7. Cabin111

    Cabin111

    The saga continues...So I got off the phone with Fidelity a couple minutes ago. I received an amount $5,476.66 for the redemption of my 100 shares. I will have to wait till July 21, 2023, before they will allow for the other side to close and fill their position. This covered call remains open, but is not trading. I DO NOT KNOW where they came up with this number. I am also not sure how much will be taken from my account on July 21st. I'll just wait till then, to figure out how the OCC/Fidelity reconciled this situation.

    I do know I will need some money in my money market account for when it gets called away. Still very confusing...