Thanks for all your replies - I was told my IB that they do not know if I will be assigned until Monday because it depends on the other party whether he wants to take delivery of the stock and apparently there is a random distribution of brokers who are called up to deliver the stock if the other party wants the stock at $330.00 Also I was told if he does want the stock delivered, I will be short Google - however, I dont have $330 x 100 - $33,000 US in my account so not sure how that is going to work? I only have 1 other open position at the moment which I am down like $20 US. Cheers
Worry Wart. Simply buy 100 shares before the market opens. The OP should not enter a market order. Strictly a limit order. Mark
Why did you not close this trade? I don't understand, you write a naked call and you could have bought to close that position for for 13 dollars. So to save 13 dollars you now put yourself in a situation that could mean potentially unlimited losses? Pin risk is very real and deadly. Maybe you should attend my seminar on penny scalping OTM options
That is NOT true They will know in time to post the GOOG sale, or the expiration of the option in your account when they go back online - and that's noon Sunday. Check your online account at that time. You made a big mistake by not covering - trying to save a few dollars. Don't do it again. But this time, it's not a big deal. [As an aside, I cannot understand why you would - under any circumstances - not cover that option prior to expiration. You thought it was worthless? Don't ever think that again. Make it a practice to cover whort options when they trade at a low price. But, you cannot hold through the close of trading on expiration Friday. You cannot.] This should not be a big deal for you. Follow SPIN's idea and COVER before the market opens. That will eliminate the margin call. Do not use a market order. Limit order only. You are not supposed to fix a margin call by liquidation of a position, but this is your first offense and the broker will let it go with no problems. But please don't get stubborn. You may have a profit or loss come Monday morning, but it's mandatory to cover. Mark
Well he does not have the money to cover. I would be worried if I had a potential 33K liability. I guess he must have marginable securities that can be liquidated. Fed call coming. I doubt IB would let him write 1 naked call contract without any type of marginable security on the hook since he apparently does not have the money to buy 100 shares of GOOG Right now its a russian roulette situation he might get lucky and when the trigger is pulled the chamber is empty.
Maybe but I like stress free weekends. Not worth the risk. Too risky. 13 dollars is better spent closing out.
Thanks Mark for your advice - ok from what I understand I will not know whether I have been assigned until Sunday about 12:00pm, then if I am, I should buy 100 shares of GOOG at LIMIT before market open? Is the market open after hours? Cheers!
You will be assigned 100 goog and you can see it in your account on Sunday evening. Since your account does not have enough money, you will get margin call and will be liquidated on Monday morning.