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</x-html>From ???@??? Fri Jul 17 18:40:54 1998
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Date: Fri, 17 Jul 1998 20:31:19 -0500
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From: THE DOCTOR <droex@xxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: OPT-Assignment
References: <199871784156641@>
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First there is no way possible that an option can be assigned "late in the day" assignment occurs
prior to the opening for purposes of notification.
Why would someone exercise a call a point and half out of the money.
Either the stock is somehow unavailable due to some tender or takeover situation and there is nothing
like that in the current US equity markets that would merit a OTM assignment or
The person who exercised the long call is moron. Stupid exercise does occur occasionally, but any
good brokerage house would advise the customer against it. Of course with the growth on internet
based trading fewer people get advice or
There is some huge piece of information missing from this story or
The whole thing is fiction.
mundi1@xxxxxxxxxxxxx wrote:
> On 07/17/98 07:49:26 you wrote:
> >
> >Rule for windfall profits: don't question them, take them.
> >
> >Now the other party maybe thought there would be a big overnight move for
> >some reason, and wrongly anticipated it...
> >
> >Gwenn
> >
> >
> >pressdl a écrit:
> >
> >> Any explanation would be appreciated. I had options assigned late
> >> yesterday. That is the first time I had options assigned prior to
> >> expiration. That was a surprise --but not nearly as much as the fact the
> >> option was assigned with the stock still 1 1/4 pts below the stock price.
> >> Any suggestions as to why someone would do this??
> >>
> >> I merely bought the stock back and wrote calls for the following month.
> >>
> >> Dave
> >
> >
> >
> >
> >
>
> The is actually quite a few reasons for this....one may be that the put price (buy side) may have
> been at a level where the conversion may have been attractive, 2> if the interst rate + carry- div
> > put price it would have been quite profitable, 3. The buyer may have needed the long stock to
> cover a call in his short stock...there could be numerous other reasons...hope this helps...David
> Gennrich Mundi
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