Do they round up strike prices?

Discussion in 'Options' started by l3randonf, Jul 23, 2010.

  1. Maximum risk is the difference between the strikes MINUS credit received. For GOOG that could be $1000.00 - $200.00 = $800.00. My guess is that your broker would never allow the long leg of your position to be closed before the short position.


    If one of the legs is approaching ITM then you should close both legs to minimize your loss, and don't wait till expiry.
     
    #11     Aug 5, 2010
  2. yes I know but I'm trying to understand what happens IF. I also know how to calculate my risks but I dont understand "stock assignments" that are automatic.
     
    #12     Aug 5, 2010
  3. The round up to the nearest 10,000.
     
    #13     Aug 5, 2010
  4. It's all a Moot Point. Your credit spread should have been closed before you end up with ITM options.



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    #14     Aug 5, 2010
  5. spindr0

    spindr0

    Is that in Weimar Republic Deutchemarks?
     
    #15     Aug 5, 2010
  6. spindr0

    spindr0

    All it takes is a web search on "option assignment" and you'll find a gazillion explanations. Here's the first one on the list:

    http://www.optiontradingpedia.com/options_assignment.htm
     
    #16     Aug 5, 2010
  7. spindr0

    spindr0

    Nahhhh, I think it's a mute point!
     
    #17     Aug 5, 2010