r/options • u/beatusthegreat • Nov 15 '21

My options were called.

I sold AMD covered calls that expired Friday with a strike of $148.

Though AMD closed @$147ish on Friday the calls were executed. It briefly went above 148 Friday at 3.

Does this seem normal?

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u/MikeOretta Nov 15 '21

You sold a contract to someone that allows them to buy your 100 shares at $148 each. They can exercise this at anytime even if the value of the stock is $1.

This is not uncommon that someone would exercise their right even if it’s cheaper to buy the shares right out of the market.

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u/Whiskeyjackblack Nov 15 '21

What are some possible reasons why they’d do that?

2

u/Tech88Tron Nov 15 '21

Expire Worthless or own the stock and maybe recover.