Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I did a short strangle on SPY. I have some assignment risk of being short SPY @ 190. I have a couple questions. If my short call is assigned will I go short on the stock or will it be purchased at market and I eat the intrinsic value, or does that vary by broker, maintenance balance, etc. (i.e., it depends on my specific situation)? The other question is if I can expect to be short SPY @ 190, I am thinking about selling some SPY leaps @ 190 and turning it into a covered put and see what happens with the market. The anticipation would be long-term bullishness with some frothiness come election time. When I think we won't hit 190 again, cover the short and let the short put expire worthless. The other option is market correction, put expires ITM, short gets covered, and I get a large premium in the downturn. Looking for opinions or alternate strategies, or to find out if I'm actually a complete moron and not a Fool. Thanks!
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.