K KINGOFSHORTS Dec 15, 2009 #3 I am assuming you want to get stocks assigned right? Since the only reason to stay short a put with only a nickel of premium left is because you want to be long stock.
I am assuming you want to get stocks assigned right? Since the only reason to stay short a put with only a nickel of premium left is because you want to be long stock.
X xflat2186 Dec 15, 2009 #4 Quote from KINGOFSHORTS: I am assuming you want to get stocks assigned right? Since the only reason to stay short a put with only a nickel of premium left is because you want to be long stock. More... I believe his question indicates there is a nickel worth of time premium over parity left in the option and its already in the money. So yes he can be assigned but why buy them back and pay over parity?
Quote from KINGOFSHORTS: I am assuming you want to get stocks assigned right? Since the only reason to stay short a put with only a nickel of premium left is because you want to be long stock. More... I believe his question indicates there is a nickel worth of time premium over parity left in the option and its already in the money. So yes he can be assigned but why buy them back and pay over parity?
