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Assent Conversions?
- Thread starter Load_the_boat
- Start date
The SEC worded its statement very strongly with regard to circumventing the uptick rule. Any product that is offered would IMO come under scrutiny.
Just watch out for any "releases" you may be asked to sign from whatever prop firm you trade with, if this or any other product comes into play.
Otherwise I have not heard anything about these new products.
Just watch out for any "releases" you may be asked to sign from whatever prop firm you trade with, if this or any other product comes into play.
Otherwise I have not heard anything about these new products.
Quote from jimmyz:
The SEC worded its statement very strongly with regard to circumventing the uptick rule. Any product that is offered would IMO come under scrutiny.
Just watch out for any "releases" you may be asked to sign from whatever prop firm you trade with, if this or any other product comes into play.
Otherwise I have not heard anything about these new products.
That is the very reason that ASSENT is verifying with outside counsel that the products offered would be legal, and stay legal. That is the delay in rolling out the potential product as far as I have been informed.
Okay conversions are available w/ Assent. For example Stock xyz is trading at 100 :
You buy 1,000 shares of xyz
buy and in the money put at 110 say August (1,000)
sell the out of money call at 110 Aug (1,000)
I understand the postions and you are basically neutral w/ this postion on. But what happens if stock goes to 110 (strike price) and beyond that? Do I have to be worried that my stock will be called away? What if there is 5 months left on the option. Is that likely the Aug calls would get exercised in March/ April if it stock goes above 110? Don't want to put a conversion on that costs $100 per 100 shares and have it only last a few weeks or just a month. Anyone know enough about conversions to help me out w/ this? The stock i want a conversion on only has an option w/ a strike price just $8 above where it closed today.
Thanks
You buy 1,000 shares of xyz
buy and in the money put at 110 say August (1,000)
sell the out of money call at 110 Aug (1,000)
I understand the postions and you are basically neutral w/ this postion on. But what happens if stock goes to 110 (strike price) and beyond that? Do I have to be worried that my stock will be called away? What if there is 5 months left on the option. Is that likely the Aug calls would get exercised in March/ April if it stock goes above 110? Don't want to put a conversion on that costs $100 per 100 shares and have it only last a few weeks or just a month. Anyone know enough about conversions to help me out w/ this? The stock i want a conversion on only has an option w/ a strike price just $8 above where it closed today.
Thanks
Quote from Load_the_boat:
Okay conversions are available w/ Assent. For example Stock xyz is trading at 100 :
You buy 1,000 shares of xyz
buy and in the money put at 110 say August (1,000)
sell the out of money call at 110 Aug (1,000)
I understand the postions and you are basically neutral w/ this postion on. But what happens if stock goes to 110 (strike price) and beyond that? Do I have to be worried that my stock will be called away? What if there is 5 months left on the option. Is that likely the Aug calls would get exercised in March/ April if it stock goes above 110? Don't want to put a conversion on that costs $100 per 100 shares and have it only last a few weeks or just a month. Anyone know enough about conversions to help me out w/ this? The stock i want a conversion on only has an option w/ a strike price just $8 above where it closed today.
Thanks
load the boat,
your risk comes at any early exercise (in that you will have to pay for more conversions or at expiration if the stock closes that day right at or close to110 as you wont know if the calls your short are being exercised
Quote from alanm:
How often do options get assigned before expiration (i.e. while there is still premium in them)?
alanm,
In the past I would get them 4x a year with H,M,U,Z expirations,
with strikes usually 7 to 10 points below the current stock price,
I got hit with early exercise about 30% of the time