Lockout period

W

wxytrader

If you have 100 ABC stock trading at $25 and the lockout period to sell ends on Jan1...could you not sell a Jan2 $1 strike call and preemptively collect your capital?

1 contract $1 strike = $25 *100 = $2500
 
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2rosy said:
you do risk reversals in these situations
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No reversal risk...it is 100% going to expire ITM, and get exercised so it's either that or the call expires OTM like a bankruptcy or something but you already got paid.

Essentially you have done an end run around the lockup period. It's the same manuever when you want to take profits, but have an ex dividend coming up, and still want to receive the dividend.

Selling deep ITM calls is getting paid now for shares you're going to sell later.
 
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wxytrader said:
If you have 100 ABC stock trading at $25 and the lockout period to sell ends on Jan1...could you not sell a Jan2 $1 strike call and preemptively collect your capital?

1 contract $1 strike = $25 *100 = $2500
More...
Good Evening wxytrader,

You are taking WAY too long to get rich as trader. WAYYY too long.

Please hurry up, so you can stop having all these trading issues.
 
SimpleMeLike said:
Good Evening wxytrader,

You are taking WAY too long to get rich as trader. WAYYY too long.

Please hurry up, so you can stop having all these trading issues.
More...

Lol I'm the one driving the (2008) Lambo! What issues?? It was just a question about locked down shares. :)
 
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