[RT] Deep ITM Debit Spread Exercised

["Carl Vanhaes" <carl.van@xxxxxxxxxx>]

I often realized that the most interesting debit spreads are the one 
with high IV on both legs. 
Going further I also could see that when you initiate a far ITM debit 
spread for both legs you sometimes can have very low breakeven points 
(for bull debit spread). 
Let's take an example: on June 3, 2008, MYGN is trading at 48.60 with 
an IV of more than 100%; if I was to select a debit spread buying 1 
CallNov08 35 and 1 selling Call Nov08 40, I would pay around $250 for 
this spread. And my breakeven at expiration would be...11 points below 
the current price: 37.60 !! An almost no-risk trade but my question is: 
would I run the risk to be exercised on my solf call before expiration 
although I own a long call at a strike below??
Anyone have any experience on this?

Thank you,
Carl


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