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Post by caveintemptor on Nov 3, 2015 8:56:35 GMT -5
18M+ shares are in calls below $3.00 strike, according to last night's OI.
Where are the shares for delivery ?
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Post by jbe on Nov 3, 2015 9:02:28 GMT -5
Could someone who understands options explain the significance of this? Thanks.
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Post by factspls88 on Nov 3, 2015 10:29:38 GMT -5
18M+ shares are in calls below $3.00 strike, according to last night's OI. Where are the shares for delivery ? What expiration date are you looking at? I'm not seeing it. |
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Post by caveintemptor on Nov 3, 2015 11:23:29 GMT -5
18 M shares (182.000 calls) with strike below $3.00 OI for all dates.
As the calls can be exercised at any time, for example to cover a short position, delivery of shares is fundamental...
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Post by rrtzmd on Nov 3, 2015 11:37:44 GMT -5
18M+ shares are in calls below $3.00 strike, according to last night's OI. Where are the shares for delivery ? It depends on whether they are "covered" or "naked." If "covered," whoever sold them just delivers the stock from their account. If "naked" then they have to be bought on the market. The vast majority are most likely "covered." |
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Post by traderdennis on Nov 3, 2015 12:03:39 GMT -5
18M+ shares are in calls below $3.00 strike, according to last night's OI. Where are the shares for delivery ? It depends on whether they are "covered" or "naked." If "covered," whoever sold them just delivers the stock from their account. If "naked" then they have to be bought on the market. The vast majority are most likely "covered." Just like the airline industry, a market maker is likely to have a mix of covered and uncovered positions. There are algorithims to approximate the correct number of actual shares to hold. Also just watch an option Friday with a huge position. It is amazing how sometimes the close is exactly $3.00 in the example above the the market makers keep the premiums and do not deliver. |
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Post by bretzyboy on Nov 3, 2015 13:55:59 GMT -5
Are the contracts below $3 as stated or at $3 and below? They'd have to be $3 or above at expiration to be called away.
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Post by rrtzmd on Nov 3, 2015 23:35:40 GMT -5
18M+ shares are in calls below $3.00 strike, according to last night's OI. Where are the shares for delivery ? It depends on whether they are "covered" or "naked." If "covered," whoever sold them just delivers the stock from their account. If "naked" then they have to be bought on the market. The vast majority are most likely "covered." Just an addendum -- naked shorts virtually are never covered by actually buying stock and delivering it. It's almost invariably the case that it is simplest, easiest, and cheapest to simply buy back the call. |
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