Y yip1997 May 17, 2007 #11 Quote from optioncoach: If there is a big gap, then it is not getting pinned to your short strike and not what he is saying. If you have the 820 short combo and the underlying is hovering around 820 you would love to see it get pinned to the strike. More... I had the 820 short combo with RUT closed at 819.32 on 4/19. It gapped out around 15 points the next day. The time value of the combo was huge. What is the best way to handle this situation? Today I have rut 820 calendar (short May, long July). What should I do now?
Quote from optioncoach: If there is a big gap, then it is not getting pinned to your short strike and not what he is saying. If you have the 820 short combo and the underlying is hovering around 820 you would love to see it get pinned to the strike. More... I had the 820 short combo with RUT closed at 819.32 on 4/19. It gapped out around 15 points the next day. The time value of the combo was huge. What is the best way to handle this situation? Today I have rut 820 calendar (short May, long July). What should I do now?
El OchoCinco May 17, 2007 #12 Quote from atticus: Of course. Buy the sh!t to close. Holding through SET is roulette. More...
M MTE May 17, 2007 #13 Quote from yip1997: If there is a big gap, the writer will still lose money, right? Last month, I shorted both rut 820 put and 820 call. It gapped up around 15 points and i lost money. Why is it the best case for writers? More... Pin risk is not an issue for a cash-settled option cause you got no underlying to worry about if assigned.
Quote from yip1997: If there is a big gap, the writer will still lose money, right? Last month, I shorted both rut 820 put and 820 call. It gapped up around 15 points and i lost money. Why is it the best case for writers? More... Pin risk is not an issue for a cash-settled option cause you got no underlying to worry about if assigned.
A atticus May 17, 2007 #14 Quote from MTE: Pin risk is not an issue for a cash-settled option cause you got no underlying to worry about if assigned. More... He's talking settlement risk on expiration day.
Quote from MTE: Pin risk is not an issue for a cash-settled option cause you got no underlying to worry about if assigned. More... He's talking settlement risk on expiration day.
D Div_Arb May 17, 2007 #15 Roll out to June ASAP and be done with it. Quote from yip1997: I had the 820 short combo with RUT closed at 819.32 on 4/19. It gapped out around 15 points the next day. The time value of the combo was huge. What is the best way to handle this situation? Today I have rut 820 calendar (short May, long July). What should I do now? More...
Roll out to June ASAP and be done with it. Quote from yip1997: I had the 820 short combo with RUT closed at 819.32 on 4/19. It gapped out around 15 points the next day. The time value of the combo was huge. What is the best way to handle this situation? Today I have rut 820 calendar (short May, long July). What should I do now? More...
Y yip1997 May 17, 2007 #16 Quote from Div_Arb: Roll out to June ASAP and be done with it. More... Thank you. I just rolled it out at around 3:30 today.
Quote from Div_Arb: Roll out to June ASAP and be done with it. More... Thank you. I just rolled it out at around 3:30 today.
