Probability of assignment?

S

scotta65

I am short 2 SPX 1565 march monthly calls. Open interest is around 26,000. Not the end of the world if I get assigned, but of course I'd rather not. If I'm ITM 3 days from now, what would you say the chances are of me getting assigned? Of course there is no real way to predict, but as far as guessing based on experience goes what do you all think?
 
Quote from scotta65:

I am short 2 SPX 1565 march monthly calls. Open interest is around 26,000. Not the end of the world if I get assigned, but of course I'd rather not. If I'm ITM 3 days from now, what would you say the chances are of me getting assigned? Of course there is no real way to predict, but as far as guessing based on experience goes what do you all think?
More...

SPX is a cash settled product. If ITM, you pay the cash based on the difference between the strike and cash settlement. Unlike equity options, the probability is 100% that will happen.

It is REALLY important that every trader understand the terms of the contracts before you trade them so you understand the risks involved. This is also an AM settled options. The last day of trading is Thursday but settles on the opening stock prices Friday that make up the index.
 
You must log in or register to reply here.
Back
Top