Apple Inc. (AAPL) Message Board
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Did a crazy option trade late in the day and oddly enough it might payoff on Monday (or not!)
Decided just before 4 PM to SELL 10 of the 440 Weekly Puts that were going to expire in about 3 minutes today. The stock was trading around 443 at that time and I wanted to get my cash position to a nice round number so I sold them for a mere .02 (20 bucks minus commission got me about 12 bucks which is all I wanted to get my cash position to a nice round number). I know it sounds crazy but I thought it would be a safe trade with 3 minutes left in the day! So of course, what happens? AAPL plummets over 3 bucks in the last 10 seconds of the day (!!!) and I frantically try to close the position and miss buying back the options by 1 second! So now they are ITM and I will suddenly be the owner of 1000 shares of AAPL on Monday at 440.00 (my cash position isn't that large so I will be margined quite a bit of course!). The odd thing is there is a slight chance that the options won't be assigned despite being ITM because some options owners elect NOT to exercise them because the AH price is very close to 440 (it actually closed at 441.00 at 8 pm!). So here is the dilemma. My feeling is that 2 things might happen- I get assigned and the stock plummets on Monday to 420 and I lose 20K immediately (on paper of course) or I don't get assigned even though I SHOULD and then I will see AAPL rebound dramatically on Monday to 460+ and I will have missed out on the best opportunity in a long time. We shall see if I get lucky or not.
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hey whats the update on this?
- 2 Replies to seymour_greenz
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Sold it at the open at 8 AM for 2164.70. Ironically had a limit order for 449.00 over the weekend and cancelled it because it just was a bit risky this morning. If I just left it alone I would have been 9K richer now but ain't complaining making over 2k in 1 minute today!
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If this was assigned he is doing well. Set a stop loss at 445 for today (just incase) and keep riding it up.
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You should have just sold stock in extended trading. More than likely you will get assigned. It was trading over 440 for alot of it so you could have locked in some cash.
- 1 Reply to gtwn13
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I didn't get assigned yet, so I own no shares. If I sold them in AH trading I would be selling them on huge margin (essentially selling short) and could get in serious trouble if I am not assigned the shares and the stock opens much higher on Monday.
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Oh Boy! Trading options is worst than gambling with the Mob in a basement!
Sentiment: Strong Sell
- 1 Reply to A Yahoo! User
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I used to do that too. You are right!
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I also sold the weekly 440 put.
would shares be assigned during premarket on Monday if it does. Holding my breath to see if shares will be assigned to me.- 1 Reply to springisland
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Holding my breath too! If the shares are assigned they will be posted late Sunday or early Monday morning before PM trading opens. Since these are the weeklies they might actually show up tomorrow late in the day if you are assigned. I can't decide if I want them to be assigned or not. I suspect We might get lucky and see a little rebound Monday morning if we own the shares. Good luck!
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That is the craziest stunt of the week.
How did you get $12 out of a $20 trade?? Commission ONLY $8 !!.
The 440 puts closed at 0.20 cents, 15 cents bid. YOU WILL be
assigned.
For the first 45minutes AH, AAPL traded between 430.15
and 43.44. YOU better hope AAPL opens higher and not gap down
$10.- 1 Reply to jms_linn
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I do hope it opens at 440 or above. The commish was only about 8 bucks. I actually traded the same option earlier in the day and closed the position after making about 1100 bucks on that trade (sold 10 of them at 1.51 and then bought them to close at .37). I should have just held that position till the close and made another 370 bucks and be in the exact same position now anyway! It was the craziest stunt for me this week (although I have had some doozies years ago!).
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next time, call me...I will give you the 12 bucks.
- 1 Reply to crackspiderbaich
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I will! lol!
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if it closed ITM, you will be assigned. On the last day of the trading year, the similar thing happened to me with IWM puts -- I was selling calendar put spreads and didnt close 45 contracts that were 15 cents out of the money at market close. didn;t realize IWM (russel ETF) doesn't close until 15 minutes AFTER market closes. Long story short, I got assigned 4500 IWM shares. Closed premarket at a slight profit. Had I held until today that inherited position wouldve been worth over 35k.. Funny.
In any event, I wouldn't play that game again if I were you. Easy way to ruin a weekend. -
Your luck has run out. The options should be automatically assigned by the clearinghouse if they are even $0.01 ITM at 4 PM EDT, not at the after hours close. You should call your broker's help line first thing in the morning and determine your situation. What a mess!!!
- 1 Reply to falling_knife
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Well they didn't waste any time giving me those shares for 440.00! Just woke up on Saturday morning to see I now am the proud (!) owner of 1000 brand spanking new shares of AAPL (with a lovely margin account that is now VERY actively involved in this trade!). They don't waste anytime when you play the weeklies. Let's see if I get out of this with my head above water. Right now it says I am down a mere $120.00 due to the close at 439.88. The AH trading to 441 gives me a little encouragement though that I might avoid a calamity Monday morning. This could end up being a blessing in disguise (or the usual curse).
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Dude that was insane what you did for the little premium you collected. Let us know if you were assigned or not on Monday. My understanding is you go by the closing price at 4:00 PM EST. AH shouldn't matter or else massive manipulation could occur in the AH to get option holders assigned or not.
- 3 Replies to chowskee
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My little mistake paid off! Got out at the open at 8:00 am and sold 400 shares at 443.10 and the remainder at various prices down to 441.60 (yes it dropped that fast in 1 minute!). Total profit from that "mistake" on Friday was 2164.70! Not bad for 1 minutes work today! I have to make more mistakes like that!
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Was already assigned this morning. The blood sport begins Monday morning at 8 AM!
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You do go by the closing price at 4 PM but there are times that after hours events can create a chaotic situation for options before they close out on Saturday (especially in Biotech or buyout situations). With the weeklies the time frame is earlier though- they close on Friday. I will let you know what happens on Monday for sure. Ameritrade says that ITM from 1 to 4 cents it is up to the owner of the option to exercise the option but at 5 cents or more Ameritrade makes an automatic assignment so it would appear that they will be assigned but Ameritrade probably won't be that interested in having me buy shares from them for 440 if they already see it at 441 today at 8 pm. Interested to see how this plays out. And yes. massive manipulation DOES occur sometimes (especially with options that expire at 4:15 PM (like VXX options)).
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this EXACT thing happend to me in Nov. I had sold the 610 puts. Stock was 630 on Thur close. On Friday it tanked, but was holding 615+ all day. Then in last 30 seconds it went from 613 to 609.85 closing print. I did not cover. But come Monday I was not assigned. Of course the stock gapped up 15 on the way to a 25 pt gain on Monday without me!!! ARRRRGHHHHH! I doubt you will get assigned.
- 3 Replies to cool_tropical_breeze
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That's why you didn't get assigned.
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Was assigned this morning! Now the fun/torture begins Monday morning.
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cool_T_B... Wow! You had the exact same event happen to you and like I said, I probably WON'T get assigned even though the technical close was 12 cents ITM at 439.88. And the reason I won't get assigned is that it will probably gap up 15 points on Monday just like it did when YOU didn't get assigned and I will not be able to enjoy that profit either. That is the absolute true irony of this trade!
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