Options Question: Max Risk

Discussion in 'Options' started by CPTrader, Oct 19, 2008.

  1. This is something many traders don't recognize. They think that if their account is too small, the broker will not exercise the options.

    What they don't understand is the it's the OCC, not the broker, who distributes assignment notices to the brokers. Then each broker has a method (either random or predetermined) for how they allocate the assignment notices to individual accounts.

    But account size, and willingness of the assignee to accept assignments are never considered.

    Mark
     
    #31     Oct 28, 2008
  2. No, as has already been mentioned in other replies. However noone seems to have mentioned pin risk nor the risk of the OEX SET price.
    db
     
    #32     Oct 30, 2008