WIDE bid ask SPREAD, can I neutralize this for no loss?

[spindr0]

Quote from cqm:

I got assigned. position closed.

Lesson learned inexpensively

 

[ogarbitrage]

Quote from spindr0:

That will lock in a loss if the time premium received for the short call does not exceed the premium paid for the put (OP's post implies that assignment would be a break even).

The opposite put of a 100 delta call would have to be cheap. Assuming in my writing that he could pick it up for a penny, 2 at most.

 

[spindr0]

Quote from ogarbitrage:

The opposite put of a 100 delta call would have to be cheap. Assuming in my writing that he could pick it up for a penny, 2 at most.

Absolutely true if the put is available for a penny or two but that may not necessarily be the case because the call has a Holland Tunnel wide spread and you can hide a lot of put premium in there (if expiry is a further month and/or higher IV).

 

[noob_trad3r]

what is the risk? if you get assigned won't that be good then since its a covered call?

 

[atticus]

Quote from noob_trad3r:

what is the risk? if you get assigned won't that be good then since its a covered call?

He sold the call under intrinsic.