Assignment (newbie)

[Eliot Hosewater]

Quote from momoneythansens:


If he sold the PUT in addition to the CALL then the net resultant position would be a synthetic naked PUT which may or may not be a risk profile the OP now desires: Bullish, Unlimited downside risk. The premium received is obviously not a locked in profit though.

I.e. a covered call.

My broker tells me that is the most conservative option play there is :eek:

 

[IIAce]

I paid 0.51 for the 25 Put and sold the 30 Put for 3.97.

 

[Eliot Hosewater]

Did they go to penny increments? I didn't get the memo.

I would sell the stock (closed today at 25.88) and the put (TOS bid/ask is .45/.55).

Your cost of the stock was 26.03. You can close the rest of the position for 26.33, a 30 cent profit, which might cover most of the commissions.

Or, as Mo said, if you are still bullish put on the collar.