I'm getting a lot of stuff called away

Discussion in 'Options' started by Arnie Guitar, Aug 10, 2022.

  1. FSU

    FSU

    Calls or puts? Was the underlying hard to borrow?
     
    #11     Aug 10, 2022
  2. I'd certainly say so - at least in those tickers. It's like someone snatching food that you're cooking out of the pot before it's done... definitely a comment on how hungry they are (well, your cooking skills too...)
     
    #12     Aug 10, 2022
  3. I would assume "called away" (rather than "being assigned") implied a specific side... :)
     
    #13     Aug 10, 2022
  4. Covered Call writing.
     
    #14     Aug 10, 2022
  5. TheDawn

    TheDawn

    It's so weird that someone would early-exercise their calls like that. If it's before expiration, there is still extrinsic value on them and it would be much more profitable to just sell them instead of exercising them especially if there are no dividends. Must be noobs. More and more people are getting into options nowadays.
     
    #15     Aug 11, 2022
  6. TheDawn

    TheDawn

    Considering the OP mentioned that dividends play a role in the options getting exercised, it looks like it's calls.
     
    #16     Aug 11, 2022
  7. Why not give an example so we can see how much free money they handed you
     
    #17     Aug 11, 2022
  8. When spreads are wide (illiquid stonks), stuff like this tends to happen more often.
     
    #18     Aug 11, 2022
  9. FSU

    FSU

    What were the stocks? Where they hard to borrow? This is one other situation where calls are exercised early.
     
    #19     Aug 11, 2022
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