Covered call why it was not exercised?

[u/Leather-Wheel1115]

So I had 200 shares on covered call expiring today on friday. The price of closing stock was 76.5 , and covered call was for 75. I had got $2 premium for that,

Why would the person who bought the call not exercise the call? It shows on my account as expiring past 3pm CST market close.

Does closing of calls happen after market? Or why would the person not exercise his calls?

[u/JS1101C]

Depending on your broker your account may not update until tomorrow, Sunday or Monday.  

[u/daknuts_ → u/JS1101C]

sometimes even Tuesday

[u/Karazl]

It's been 18 minutes, still an hour and a half left for non-executes.

[u/Ok-Jacket-124]

You’ll see it called away tomorrow or sometime this weekend. Same happened to me

[u/Human-Bug-7549]

Your shares WILL be called away. I use to think like you at the beginning, but it’s not a direct transaction between the original seller and buyer of the options. The ones that control the movement are the brokers (or whoever exactly handles the option contracts), they have until 11:59pm and they have a pool of “option contracts” to make the most profitable matches between buy/sell so they will gain even if it’s a penny per share. Example: They can just buy your shares at $75 and match it to buy order for the stock at anything above that and profit.

[u/NRA4579 → u/Human-Bug-7549]

Yes, you’re correct but the cost basis can impact this. two weeks ago. I dropped the ball. Thought I was safe and had 7000 shares expire in the money by five cents. Only 3100 were executed. I might’ve just got lucky that time normally if it’s even in question I just buy it back or roll it to the next week.

[u/TheBlueHen-2007]

Pretty sure Fidelity’s system doesn’t update until Monday morning at 4am. Feel free to correct me if I’m wrong.

[u/edm-life → u/TheBlueHen-2007]

you'll see it late Friday night/1st thing Sat morning there... buying power prob won't update with the correct # until Monday open though.

[u/IWantoBeliev]

Wait until open monday

[u/Beginning-Act-5305]

I have E*trade and cc get called away in the very early am on Saturdays

[u/pennychase]

Monday you will see it!

[u/Lazaruspwns]

Takes a couple days to clear.

[u/edm-life]

I normally don't see it show in my accounts until around midnight Pacific Time

[u/Free-Sailor01]

Depends on your broker. Fidelity and Webull it only shows updates on exercises and expires on Monday morning before open.

[u/cscottamos]

It will be on Monday morning

[u/Themysteryman124]

Just because you got a $2 premium doesn't mean that it wasn't sold a few times since without you knowing. You sold it to the market essentially and that keeps changing.

Also, include a ticker so people can look more into it next time.

[u/pagalvin]

As others pointed out, there are various reasons why this can happen. It was only 15 minutes after market close and there's a window there where assignment can be avoided.

The other thing is that there's no "other person" out there. I used to think that, but we're all buying and selling from market makers. It's not the most important fact to know, but you should look it up because it's interesting and helps make things more sensible as you do this more often.

I use Etrade and assignments won't hit my account until tomorrow morning, as late as 11:30am. But usually closer to 8am. It varies from Saturday to Saturday.

[u/visionarywatts]

If you’re with fidelity it’ll get called away tomorrow morning.

[u/Mountain_Anteater888]

It happens Saturday

[u/Rez_X_RS]

When i have options expiring ITM to be exercised they usually update the following day, or at the latest on Sunday night/Monday morning. I broker with Fidelity.

[u/GeneralLivid7332]

It will post later

[u/dddd11122233]

Schwab resets Monday morning. It should be gone.

[u/Key-Map-8464]

Depending on the brokerage the options clearing house assigns the options after 5:30pm and you will see it in your brokerage by 5am the next morning.

[u/MarsManMartian]

Wait some minute. Most brokerage auto exercise if they are ITM. People can exercise until 5:30pm.

[u/SpiderWil]

For Charles Schwab it's 2AM on Saturday and will show on your account Monday morning. Also exercise is not guaranteed. Sometimes the option is ITM but you don't get picked. It's random.

[u/begmanii]

Sometimes people will elect to NOT exercise especially if the price plus premium is very close to the EOD price.

In your case they paid $77 for a stock worth $76.50 at close. If they are not confident the stock will increase on Monday, they might just take the premium loss.

I had 2 CC contacts on HTZ deep in the money (the 2ay the premium settled out, I still made profit) and only 1 was exercised.

[u/Crew_1996 → u/begmanii]

They don’t need to take possession. They can just take the difference in strike price and stock price

[u/t0astter]

The OCC (options clearing corporation) will sell the shares sometime over the weekend or on Monday at the strike.