I have bought a boat load of 2.5 calls and sold a boat load of 2.5 puts way back. It will be interesting to watch which side of 2.5 they (MMs/Shorts) pins. I'll win either way. They have to deliver 15,000 to 20,000 shares depending on which side they close.
"I have bought a boat load of 2.5 calls and sold a boat load of 2.5 puts way back. It will be interesting to watch which side of 2.5 they (MMs/Shorts) pins. I'll win either way."
I'm a bit puzzled by your statement above. I can understand that selling the puts made you money as they expired worthless (good call). However, if you bought a boatload of 2.5 calls (for however much money), you LOST all that money as the calls expired worthless.
If the puts happen to be assigned to you, you'll be expected to pay $2.50 for each share assigned. (In cases like this, sometimes the options are assigned, sometimes not). As for the calls, it's up to you to REQUEST that your calls be exercised, otherwise they will vanish into thin air. No need to exercise them as you can buy shares on the open market for $2.50, the same as the strike price of your calls. Why pay the exercise fees when you can just buy shares instead?
You're right. I was expecting the price to be above $2.50 or below $2.50. If above $2.50 (say $2.55), all my calls would be exercised and I would have been assigned those 15,000 (approx.) making it a close to break even with very little loss because of .05c above 2.50. But I would have a good gain for the 11,000 (approx.) shares for the $2.50 put. Had it settled at less than $2.50, i would have been assigned those 11,000 shares and I would be very happy with that. But the price is pinned at $2.50 apparently by MM, so that most likely I won't be assigned any shares either way by them and I'm not happy with that. This shows how manipulative the MMs are.