$1.70 Premium with 3 days to go

Arnie Guitar

Arnie Guitar

Jesus, I'm outta cash, but MO Dec 70 Call has a $1.70 Premium with 3 days to go.

I know there never is, but this is the closest thing to a sure thing ITM Covered Call Write I've ever seen.
 
Holy Crap, the Dec 65 Puts, almost 10 points, and over 12 % away, are at .60.

I'd sell as many naked puts as I could.

I'll go out on a limb here...........,

There is NO WAY MO is goin to 65 by this Friday.



















Of course, I have been wrong before. :( :( :(
 
I mean I am committed to other positions.

I wish I could follow that "Keep some powder dry" advice.........

So, excuse my ignorance, but generally speaking,
for every naked MO Dec 65 put you sold, you would have to have
how much on deposit with your broker?

If your broker's margin requirement was, let's say, 50%,
half of 6500 is 3250, so you'd have to have 3250 in cash on deposit for every contract sold, right?
 
Quote from Arnie Guitar:


So, excuse my ignorance, but generally speaking,
for every naked MO Dec 65 put you sold, you would have to have
how much on deposit with your broker?

If your broker's margin requirement was, let's say, 50%,
half of 6500 is 3250, so you'd have to have 3250 in cash on deposit for every contract sold, right?
More...

First to answer Arnie's question, because I'm a helpful kind of guy:

Exchange minimum margins are: 20% of underlying - out of the money amout/ or 10% of underlying price, whichever is higher+ (option price): So $740 + $60= <b>$800</b> required for every MO DEC 65 put sold.

Many brokers require 25% of underlying price, instead of 20%, because they are assholes. With them you'd need ($1851)- ($903) + ($60)= <b>$1,008</b> on deposit for every MO DEC 65 put sold.
 
Now my question:

<b>What time is the verdict supposed to be announced?
</b>

The 5 articles I scanned for this information apparently didn't deem it important enough to mention.
 
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