Will I be assigned?

shazam75 · Mar 20, 2009

Hi

I was short a CALL on the March 330SK on GOOGLE today and GOOGLE finished at $330.17 - will I be assigned on this trade come monday, meaning I will have to deliver 100 shares at the $330 price or is it not far enough in the money ?

Cheers!

Martinghoul · Mar 20, 2009

What do you think?

jeb9999 · Mar 20, 2009

Read the rules.

"While each firm may have their own thresholds, the Option Clearing Corporation's auto exercise threshold is 1 cent (.01) in the customers account. "

KINGOFSHORTS · Mar 20, 2009

Was this a naked call??

heh.

gkishot · Mar 20, 2009

Quote from shazam75:

Hi

I was short a CALL on the March 330SK on GOOGLE today and GOOGLE finished at $330.17 - will I be assigned on this trade come monday, meaning I will have to deliver 100 shares at the $330 price or is it not far enough in the money ?

Cheers!

You will have 100 shares of GOOG short on Monday which you will have to buy back.

KINGOFSHORTS · Mar 20, 2009

What if google rallies and gaps up, at 390?

spindr0 · Mar 20, 2009

If this was a naked call and IF you are assigned, you will be short 100 shares Monday morning. If you have online access, verify this. If you do not, speak to your broker/firm early Monday morning.

If you want to be short the shares, no problem. If you don't want to be short, verify assignmment ASAP because this position has the potential to hurt you if GOOG rises Monday. You can trade GOOG in the pre-market so do not wait until regular hours if your objective is to cover.

spindr0 · Mar 20, 2009

What if google rallies and gaps up, at 390?

Then the probability of precipitation will be 99% rain, 1% people.

newguy05 · Mar 20, 2009

yes make sure you are on top of this, because it could trigger a margin call resulting in auto liquidation. Which is fine if you only had goog, but if you have other positions in the account, they might be auto liquidated instead depends on the broker.

You need call the broker ahead of time if you believe a margin call is incoming to work things out with them.

I would be much more worried about your margin situation than weekend risk from holding 100 shares.

good luck

johnnyc · Mar 20, 2009

do you have 100 GOOG in your account? any long calls or short puts that may have finished in the $ too? If you haven't checked your account yet, it's possible your broker/firm may have closed this out for you if the assignment carried too much risk for your account.