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I'm sorry but you're all making it far too complicated :). An otm put, at expiry, will not be assigned. An itm put at expiry will be automatically assigned. Whether the option is assigned early depends on how much extrinsic value it has left plus there's an element of chance i.e. some buyer...

I'm sorry demoship but this doesn't make any sense. For example, using your formula, what if put strike is 40 and stock price is 47.65 and option bid is 1.20 and there is 25 days to expiry? Thus, with your formula, you get 41.20 which is less than 47.65 but I don't think anyone would likely...

Hmm, more new posters chiming in. Maybe Ursa was right :cool:. db

Lol, you're becoming paranoid Ursa :) . db

Assignment on American style options can occur any time during the life of the option. However you are unlikely to be assigned early UNLESS the short option has little or no extrinsic value left. Dec options have a fair bit of time value so unless the stock rockets down (causing a mighty drop in...

Are you saying he is NOT a newbie? And that he is pretending to know very little about options? Surely that warrants an immediate ban from ET! :mad: db

To be fair and provide a balanced view, I must say that selling calls could also be a fine undertaking. But wait! I know this may be a little off topic but buying PUTS for a living is also a good idea, as is selling them. And if you really want to make a good living then you could combine the...

And I think also that a word of thanks is in order for your generosity (not to mention time) in replying to all these posts, Derivman. So, thank you, for your efforts are much appreciated in continuing to contribute to this most excellent of topics. Keep up the good work and may the Lord smile...

Right you are chief, let's stick to the topic! 'Buying calls for a living' has so far been very entertaining but not much of use has come up yet. Perhaps you'd like to start by contributing something noteworthy rather than continuing to say things like: 'I shall be making a reply later to tc5...

Wind up merchant, Jamie. db

This whole thread has, so far, been very entertaining indeed and also helped me get some great laughs. I only wish that derivman would insinuate himself into some of the other posts so we could all benefit from his astute and well researched questions :p. Personally, I can't wait for the next...

Neat. I'm in the Sydney time zone waiting for the US market to open. db

LOL!!! This is great! I wish I could have come up with something like that. All I've got is the old ... and then ... talking .. with .. spaces ... like cyol ..and ... atit.. used to. I must say that the only people usually posting at this hour are the ones in a different time zone. db

I know. I merely meant to point out the general relationship but obviously there isn't a 'number' that explains if iv changes x amount then time decay changes y amount. It's just a generalisation - if more time to expiry then premium will be higher than if less time to expiry. If vol goes up...

Thanks :) db

The evidence resides in my trading account. Maybe if you give me your fax number I can send you my trading statements :). Now I have to get to trading - market opens in 5 minutes and you've wasted enough of our time here, although it was entertaining for a little while. db

Ok, I'll bite because it's a rainy old night :) and 16 minutes til market opens. US market: march 9 2007 sto RUT apr 850/860 call vertical for cr 0.54 april 4 2007 btc Rut apr 850/860 call vertical for db 0.15 Australian market: april 3 2007 sto SGB apr 34 puts for cr 0.39 april 12 2007...

You're right, sorry :( just got carried away, it's a rainy old night in Sydney and waiting for the market to open. db

That's interesting. So their motives for coming to ET is to drum up new business to recover some of their trading losses? db

Thanks for that warning - you are obviously genuinely interested in helping us all. Please accept my apologies - I don't know what came over me, sometimes we say things we didn't mean in a public forum. Please give me some more advice and I promise I'll be a good little boy so you won't have to...