How to repair multi-leg strategy if you get assigned

Discussion in 'Options' started by Yanoshi, Mar 15, 2017.

  1. FSU

    FSU

    True, but the OP said there was no dividend here so his assignment was assumed to be because the stock was hard to borrow.
     
    #11     Mar 16, 2017
    Yanoshi likes this.
  2. JackRab

    JackRab

    Correct but I doubt that's going to happen with options with longer dte. Exercising options in a hard to borrow case is only done at the extreme. When you have a position like short stock long ITM call, there are better ways to get a long or neutral stock position.

    And if it's close to happening, it would mean the call is pretty far ITM, same strike put would be close to zero and basically means OP would have a flat position in the call/stock, near to expiry... so there's not much to repair anyway...
     
    #12     Mar 16, 2017