Hey guru. According to you every option that is currently OTM will remain OTM. Very comforting for premium sellers. Mark
No I'm not saying that. I'm saying that OTM options have a zero chance of assignment. Lets not twist my words around. -------------------------------------------- forex-forex Trading guru since 1974 Highly respected ET member since 2006 Bankrupt since 2008 Homeless since 2009 ?????
OK. To what does 'zero' refer? Mark ------------------------------- It appears to me that he is saying correctly that if an option is OTM and stays OTM at expiration, then it has a zero chance of being assigned.
I'll sell a covered call at a 100 strike and when the price moves to 110, I'm a genius, because no one will exercise a 100 call option with the price at 110. :dumbass-icon How'd that 38 OCT QQQQ call buy work out? Last I checked, you'd lost 96% on that trade. Did you make it all the way to a 100% loss?
We are talking about OTM options, your example is using ITM options. Lets stay on topic. ------------------- forex-forex Legendary trader ET gold member
Is this correct? Did you mean 90? If you sell a covered call at a strike price of 100, and the stock rises to 110, isn't the option buyer ten dollars in the money? He would exercise if still in the money at expiration.