ITM Stock Wasn't Called Away.

Discussion in 'Options' started by Arnie Guitar, Jun 29, 2020 at 10:06 AM.

  1. A first for me.
    In the past, if it was ITM by a penny, it was gone.
    This one was .16 ITM.
    Hmph...
     
  2. traider

    traider

    what stock is this? put call? strike? did you use the correct settlement time? It's not the time when exchange closes.
     
  3. It was a covered call.
    The 17.5.
    It expired this past Friday.
     
  4. zdreg

    zdreg

    It is nothing unusual. The buyer of the option can chose not to exercise. He didn't want the shares in his account on Monday.
     
  5. destriero

    destriero

    I've only seen it happen on small lots in a very low volume series. It was probably an AH quote you are looking at where the NBBO was straddling 17.50.
     
  6. It was OXY, closed at 17.67ish?
    600 shares.
     
  7. JSOP

    JSOP

    pin risk. Fear not. If the stock goes up even higher, you would be making more money. Option premium + profit from selling the stock. Count yourself lucky.
     
  8. I've already written more calls against it.
    Maybe I shoulda sold it!
     
  9. zdreg

    zdreg

    Now you are giving stock directional advice. If some negative announcement should occur he would loose money.
    You are a man for all seasons. You have expertise on options, on the law and now on stocks.

    I admire your philosophy of life right or WRONG BUT NEVER IN DOUBT.
     
  10. JSOP

    JSOP

    Be careful if you sell the stock before the calls expire, then your calls would be naked. So if you ever get assigned you will be short.