Question on Options Expiration and Trading Halt: HAR

Not necessarily. The OCC won't exercise them unless they are notified that they should do so. What % of traders and investors contacted their broker and said "Exercise the O-T-M 95 put?" Some thought they were worthless, others like you thought they would be exercised automatically bacause they were in-the-money. As far as OCC thought, they were OTM.

Lets see Monday what % of the 95 puts were exercised. I'll post it.

I'm hoping that since this is a forum where ideas are exchanged, a few traders learn something that might spare them from some pain down the road.



kny 3

 

Thats a good point, the retail investors probably wont know enough to exercise their puts but you can bet the firm guys and the MM's will can the exercise on their calls and do the puts.

 

you are a complete idiot.

the closing price was $85 during regular hour trading. no notification was necessary for 95 long put holders to exercise their puts. 95 long put holders were automatically exercised.

 

What kny was saying is that though you saw the last traded price as $85 before the halt, that is not necessarily the price the OCC will use to determine whether to exercise or not. I would be surprised if it is not, If anything I should expect 82.45 which was the price in after-hours, not 102 or 105. We shall see.

 

LOL. That quote does not say the last available HAR price from September 21,2007 "DURING REGULAR HOURS." The last known quote from September 21st is what HAR traded at, at the end of the day ($82+)

 

There are no free lunches

 

That's interesting, but I would think that the last available price will be the closing price during regular hours (though I have not read the specifics from OCC document so can't be 100% sure), otherwise OCC is really putting itself into a position it does not want to be because anything can happen after market closing to a company. Hope someone more knowledgeable can shed a light.

 

kny was not saying anything like you said. I wrote my post after KNY posted furthermore HAR reopened for MOC orders which was $85 and is the official closing price of the day.

 

at least you are honest enough not to pretend to know the answer.

 

why don't you read the document. your reference to the other thread is a waste of time because the level of understanding there is about the same as this thread. alot of malarkey and good for a laugh.
if people do not take the time to avail themselves to learn the rules of the game they should not be trading.