Hi All, I am new to the forum. I have a question related to /CL options trade and will be very thankful if you can please reply. I shorted 105 Jun Call. And today its in the money. So what are the chances of me getting assigned ? (and what is the settlement process?). Is it advisable to close/ roll the position or take the chances to get assigned? Thanks in advance!
1) At this rate, it is a certainty that you will be assigned. By the way, isn't it a July call and not June? 2) It also remains to be seen what you will lose out of all this. 3) Offset the option and be done with it. "Weird" stuff could happen in Iraq and/or Ukraine over the weekend .... to your detriment. :eek: 4) To be assigned will make you "short" from the strike price of $105/barrel and your clearing firm will demand that you then get out of that futures before rollover and definitely before (LTD) last trade day.
If you are a retail trader then your broker will liquidate the position...the option settles into the futures and you will then have to close the future. Your best option at this point is just to roll. Oil is volatile but will NOT go up/down forever. When you roll the short call then you can sell an OTM put . You will then be married to an Oil strangle for the rest of your natural life ........................................ but its not necessarily a bad thing.
Hi All, Thank you very much for your prompt reply. I got the margin call from my broker today. So i will close my position.