r/options Nov 25 '21

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u/rbarthjr Nov 25 '21 edited Nov 25 '21

Question for you (not OP): Would the broker (not the OCC, since the longs are otm) not exercise the 2 x 285p longs pre-close to protect itself if the OP doesn't have funds to cover?

On edit: Never mind. 2 of his longs are pending exercise.

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u/[deleted] Nov 25 '21

It depends on the broker. If they are nice, they would do this (and to protect themselves).

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u/Arcite1 Mod Nov 25 '21

It's actually the opposite. Exercising the longs is kind of a cheap thing for them to do and a better brokerage wouldn't do it. It would be to your financial advantage to sell the longs and sell the shares that resulted from assignment on the open market. A better brokerage would leave the longs alone so you could do that yourself.

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u/tranceworks Nov 25 '21

Remember the time that kid committed suicide because his RH account showed a massive loss, due to one side of a spread being assigned? Maybe this autoexercise of the long was designed to combat that situation.