I had $605 options, I insisted my broker Exercise them, they are doing it!
I paid a premium for those puppies, 12.50 per piece X 3= 3760.00 with commish
If I am going to lose $3,760, I might as well exercise the options and wait for Monday
with a pop of $10-12, I could get most of my money back. Luckily I had enough money
to exercise them on MARGIN. I needed 90K in account, I only had 78K, so I transferred
money to make sure all 3 options were exercised. I wont allow premium holders to get
away like this. One time I exercised June 550 calls for $546 and my broker thought I was
nuts but after I told him I spent 6,000 on premiums that I would not take a loss, and sure enough
8 days later I sold all 600 shares for 572/share. I make them exercise the options because they
attempt to manipulate them on Fridays, weeklies. I personally will not allow them to do it, Once I
had 17 contracts and I could not make them exercise it because I did not have the funds but I did
make them exercise 2 of them for which I did have the funds. Sure enough, after holding for several
months, I made a 5K profit on top of recovering all monies on the option premiums. I dont care what
the broker says, I make them Exercise the Options. Infact I insist on it.
Definitely makes some sense. Chances have it brokerages are in fact trading against you, personal exp is Scottrade years ago and when I did the same thing, I closed mt acct w/ them and told them solidly to f off. This kind of thing is also specifically why I later decided to just buy shares outright. No expirations to worry about... I own the stock regardless of swings and have always come out ahead owning.
Only loser shorts will not like this post... do what you think is right, and usually it does turn out to indeed be the right thing.
Sentiment: Strong Buy
So you paid $4 more than the closing price on those 550s? LOL. That is about the dumbest thing I've ever heard. You could have just bought shares on the AH market for near the closing price or maybe even less. LMAO.