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Thanks for your answer Ben - good to know. That was my assumption:
written options assignments usually just before or at expiration but
again I have no experience in this.
Carl
--- In realtraders@xxxxxxxxxxxxxxx, Ben <profitok@xxx> wrote:
>
> I have never been exercized, by closing position 1.5-2 weeks before
expiration
> Ben
>
> ----- Original Message -----
> From: Carl Vanhaes
> To: realtraders@xxxxxxxxxxxxxxx
> Sent: Tuesday, June 03, 2008 12:50 PM
> Subject: [RT] Deep ITM Debit Spread Exercised
>
>
> 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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>
>
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