attention all thread members...please stop the flaming and vulgarities...heat is fine...being a jackass is not...keep it civil...this goes for all including the op...thanks your benevolent moderator
Well, if you thought that you were an expert then I suppose it wouldn't be a compliment. But if you're just a very knowledgeable sharing his experience then it is (am I off the hook?) Keep the faith!
It's a lot more fun to run someone around in circles with convoluted descriptions than to actually provide real numbers that support the "maths" premise. Kinda reminds me of another BB. It appears that Houdini has left the BB-Ba-building.
Re: "IMO - The automatic exercise is not a good thing - the call or put holder only should have the discretion of exercising at expiration - it should not be done automatically just because some stupid people forgot to ever do anything with their in the money options. a) Automatic exercise is a good thing - for the broker who rakes in the commissions. I've been complaining about auto exercise for awhile, but the powers that be love the rule. b) The option contract stipulates that the option owner has the right but not the obligation to exercise. Apparently no one has attempted to sue the exchanges over the fact that those rights are nullified at expiration - and the exchanges can force the exercise. This is a class action waiting to happen." Contact your broker and ask about a do not exercise or contrary intention request. I think it usually entails a phone call you must make to your broker before the end of trading on the day of expiration.