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Re: Question/comment re last week's calls

By: gman1962 in IDCC | Recommend this post (0)
Tue, 24 Jan 12 11:26 PM | 352 view(s)
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Msg. 44357 of 48237
(This msg. is a reply to 44355 by robweis)

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not likely. if you are long a call (own it) it gives you the right to call (read take) the stock from someone at the 45 strike. ie, if the stock was at 50, you could take it from the seller of that call at 45. if the call holders exercised their option to call stock at 45 last friday, they are down ~9 bucks per share at this time. you don't have to call stock away at expiration. if the stock closes higher than the strike on ex-option day, you can sell the long call for cash. usually for the same amount above the strike. ie, stock at 46.50, call owned at 45 strike, $1.50 per share profit or $150 per call contract owned.

now if you you were short puts, you are hurting today...if you were long puts, you are smiling all the way to the bank today. this is a stock that has always paid to have a pocket full of long puts. Wink

hope all are well. tuff day today..

good luck!!!

jmho

gman Cool




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The above is a reply to the following message:
Question/comment re last week's calls
By: robweis
in IDCC
Tue, 24 Jan 12 10:37 PM
Msg. 44355 of 48237

A whole chitload of calls just got exercised $45-. (?)

Did that just happen? Those calls owners got hosed bigtime. Like having the stock put to them, yes?


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