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DJ News frequently scoops the others by as much as a minute or two so it is entirely possible that there was no evil intent. :)

Neat little trick to know...probably programmed into some bank's computer. lol Thanks for the explanation.

Sorry, A bit slow here. Why would the exchange round the price of the contract by that much? As you point out it creates an instant loss for someone...

From what little I have heard on this subject the spreads eat the arb possibility...(not a definitive answer fwiw)

A few sites you might find interesting in addition to this one: www.wealth-lab.com www.tradestation.com www.smartquant.com www.wilmott.com www.neoticker.com and of course I highly recommend googling your favorite search terms and filtering for pdf files to get access to various related...

I always liked www.futures-trader.net. Autotrader is free still I think -- don't remember the url offhand. All of them may or may not have trouble with TT down the road. Since Ninja is probably the most visible I'd guess they would see the lawyers at their door first. An obvious question is...

This might help. It is from the GM tender and appears to be standard language for dealing with these types of situations... http://www.theocc.com/market/infomemos/2005/may/20570.pdf SPECIAL RISKS Writers of call options and holders of short positions in physically-settled security futures...

Ah...! Thanks for explanation.

Well, I'd be long the 15P at $.90, exercise them, and then buy the stock to deliver -- currently at $14.10. So there is no arbitrage there on the May puts. Basically, I'd lose the commissions. The June 15P are going for $1.20. So, that's even worse... It seems the only option is the...

Anyone able to short MYG this morning. It is trading above the buyout price -- and is unavailable at IB.

If you look at the action in KMG the morning after the tender it looks like that is exactly what happened. Opened way down and then saw a lot of buying -- short covering? -- before settling. If correct it's a good one to add to the playbook for the future...

You may be right. I can't believe there was a free lunch of that magnitude left sitting for all and sundry...

I thought about that -- also theorizing here. If I had bought the call right at the close and then been assigned. Wouldn't I be required to deliver shares the next day when I got the notice of assignment? This would be after the midnight tender deadline so hypothetically I would not owe for...

If you had been assigned then you would have had the $5 credit and a small debit (depending on the price you bought the shares at this morning). I wonder what could have gone wrong?

Was it this easy. Could you have sold the 70 call yesterday and made the $5 today? Or do the strikes adjust in some fashion as a result of the tender?

Interesting... Are you legging into these spreads? If so, do you do the next leg right away at market or do you hang on for your price?

Must have been an easier trade yesterday. The spread on the 1090 is absurd -- 1.5 x 2.10

I was looking at the results for funds that write OTM index options the other day. They are having the slowest year yet I think. I noticed that Ansbacher hasn't posted his April results yet. :confused:

I got an undergrad degree in philosophy. There are times when I find it very comforting. :)

or are we in for another nuking tomorrow. -- toss this thread under the meaningless chit chat kind of thing...