Long Put deep ITM at expiration

[zghorner]

That is not my problem.

This is what I do not understand...

"Was long a put that I thought expired OTM..." K, so the put option you bought was ITM then...

(but the buyer exercised after hours on Friday cause the stock dipped below the strike...).

He was the buyer! What is he talking about? Does he mean the seller that sold him the put?

Oooooooo yea that's fucky lol.

 

[Overnight]

Oooooooo yea that's fucky lol.

See, even experienced options traders don't know WTF. Gosh you guys are just NUTS!

There's a video for that, God dammnit!

Zzzzzttt!

 

[Overnight]

This thread needs a @destriero treatment to make sense of the spaghetti it has become. Come on, dest, do your civic duty here in your stomping grounds!

 

[TheDawn]

That is not my problem.

This is what I do not understand...

"Was long a put that I thought expired OTM..." K, so the put option you bought was ITM then...

(but the buyer exercised after hours on Friday cause the stock dipped below the strike...).

He was the buyer! What is he talking about? Does he mean the seller that sold him the put?

But the seller of a put cannot exercise a put. They can get assigned to BUY the shares when the buyer of the put exercises the put against them when it's ITM. This is why I suspect the story is made up just to make a point to troll.

 

[Overnight]

But the seller of a put cannot exercise a put. They can get assigned to BUY the shares when the buyer of the put exercises the put against them when it's ITM. This is why I suspect the story is made up just to make a point to troll.

Yes, that is what sent me for a loop.

 

[FibonacciNinja]

Auto Exercise?

 

[BlueWaterSailor]

Indeed. This is why I stay out options, because of people like that who claim what was claimed.

Oh, bull. You stay out of options because you're scared of them, that's all.

How do you, as a buyer of a put, get exercised on your put that someone else bought? Logic error!

Yep - it's a logic error. AFAICT, people missed that he was long that put and assumed he was short ("AFAICT" because I've got the OP blocked, so I can't see about half the convo.)

Note that being long does not mean you're safe from exercise: if it's ITM and you haven't either closed it or notified your broker not to auto-exercise, it'll happen automatically.

 

[Overnight]

Oh, bull. You stay out of options because you're scared of them, that's all.

...

Yer GOD DAMN RIGHT I'm scared of them! I don't want to be that guy...

 

[BlueWaterSailor]

Yer GOD DAMN RIGHT I'm scared of them! I don't want to be that guy...

If you're trading natty gas with those ridiculous margins you get in futures, you already are that guy. Although he was stupid enough to leverage them even more...

It's like "NO! Dancing around this smoking pile of dynamite ISN'T enough for me to get off! Now pour that damn nitroglycerin on it and be quick about it!" WTF... some people's children...

 

[BlueWaterSailor]

Or, you know, you could just be this guy. No options required.

https://financialpost.com/investing/phantom-trader-who-blew-hole-in-worlds-oldest-power-market