Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RkyMtnFool who wrote (12692)4/25/2000 12:36:00 AM
From: FruJu   of 14162
My guess is that your calls were exercised by your broker, but that they are choosing to screw you because you did not order the assignment.

Yes, I find it hard to imagine that a broker would just leave that amount of money lying on the floor when all they have to do is hit a few keys to exercise it.

As the supervisor of options trading told me when I rhetorically asked whether they would have automatically exercised the long calls if the stock had closed above the short strike price, he said "Of course, because that protects our position". I related this in my letter turning it around, saying "what have you done to protect your customer's position?"

I realise the onus is on me and I shouldn't have assumed they would act like every other broker I've been involved with, but there were some mitigating circumstances (first time trade, Thursday expiration, online-only account which doesn't provide for specifying assignment other than through a broker, etc).

I'll let you know if I'm successful, and let you know who the broker was after the eventual resolution.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

Copyright © 1995-2018 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.