Biogen halted, options expiring today.

Discussion in 'Options' started by FSU, Nov 6, 2020.

  1. taowave


    They blew you out of a synthetic put??

    You got assigned 6 months out??

    Was there a massive dividend??

    Could you not borrow the stock??

    No one thought to exercise the long call??

    50 calendars for a ten cent debit and you dropped 15k??

    Cmon bro

    #41     Nov 7, 2020
    destriero likes this.
  2. destriero


    Yeah, no juice six months out? I would say he chose the ITM because it was cheaper, but this assumes that he understood the equivalence, which I doubt.

    People, don't trade DITM calendars. TBH, I have done it when I am babysitting a series and I am adding liquidity in a vertical or calendar. The assumption that spot will invert the strike (initially ITM -> OTM) during my expected hold. The idea is that I will be taking liquidity on the cover and I'd rather be OTM (If I was correct on deltapos/direction) at the time of the cover due to microstructure.

    So ignore the above and trade ATM/OTM.
    Last edited: Nov 7, 2020
    #42     Nov 7, 2020
    eternaldelight and taowave like this.
  3. I'll survive it somehow. :)

    Yeah, 'cause no one ever gets loses money trading futures! :D:D:D

    I notice you keep hanging out in the asylum...
    #43     Nov 7, 2020
  4. Yeah this is the problem I have some times. Just had some expiring close to money spreads on EXAS I wanted to close, but the damn short ops weren't trading. I put a few dollars out there, but no takers. So I watched it like a hawk in AH. Small position but taking chances like that is stupid...
    #44     Nov 7, 2020
    destriero likes this.
  5. zdreg


    People should thank you for using the word stupid plus add the word greedy. There is nothing like a reality check.
    Last edited: Nov 7, 2020
    #45     Nov 7, 2020
  6. destriero


    An example. You're bearish on AMZN at 3320 and you're working a 3250/3300 bear call spread at 0.50 above the bid. Shares trade lower and the spread is OTM and a bit more liquid. TBH, not an issue in something liquid like AMZN. A lot of times there simply won't be any interest in a DITM spread on an illiquid series. MMer with any discretion (not a bot) will know that anyone in this spread likely needs to cover and will lean on it.
    #46     Nov 7, 2020
    eternaldelight likes this.
  7. destriero


    Also why wide synthetics are better than call or put natural verticals. Goes with flies as well (also verticals); especially the broken flies/asyms. Why risk an assignment when the synthetic will routinely offer a tighter NBBO?
    #47     Nov 7, 2020
    Option_Attack likes this.
  8. qlai


    Forgive me if it’s obvious, but how did he blow up? He was long stock and long puts. Broker liquidates stock and books the loss. Then the stock goes up without him and the long puts expire worthless?
    #48     Nov 7, 2020
  9. zdreg


    He did not blow up. quote spreads eroded the profitability of his position.
    #49     Nov 7, 2020
  10. taowave


    Doesn't make sense..Trader had an ITM put after TSLA traded lower in AH and no automatic exercise???
    #50     Nov 7, 2020