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Additional Posts in Option Traders & Investing
Views on bull or bear?
Potential opp on the short side for TSLA?
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What’s does “fill the gap” mean??
5/28 Thread (General):
$DPZ 370c 3/27
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Mentor
You’ve given the buyer of the put the right, but not the obligation to sell you the shares at the strike price by the expiration date. Doesn’t make sense to exercise early unless they are way deep in the money or the buyer needs to free up the capital / margin tied up in the underlying. The option still has time value left in it, so most people would just sell the option rather than give up that time value.
TL/DR: no one in their right mind would exercise an option early that is only 30 cents in the money.
That makes sense- thanks for the explanation!
Enthusiast
Just curious what stock is it?
MSFT
Mentor
You may want to read up on selling puts if you are choosing such a low IV and overbought stock. They are 2% off their all time high. And the premium you collect isn’t that high.
Do you have any recommendations?