I have a question, and it's not all the important if I get an answer but I am curious.
I sell puts on ALE fairly regularly, and occasionally a call if it spikes. I never intend to buy them back because the options are just too low volume. It's just a hassle. The stock is not particularly volatile but it can be intraday so premiums can be decent. I throw out a price I like and when I have a minute I'll adjust it down. I get my way or I try again another time. None of that really matters other than the point that it is a lousy choice for quick trades. The spread will get you if you are in a hurry to close.
Anyway I was called out of my ALE shares a few months ago on a covered call sell at 70. I sold a couple JUL 16 Strike 70 put contracts at 1.20 and 3.00 over the past 24 days. I was exercised today and these were the only two ALE put contracts to trade today. My broker lists a 2:30PM trade at 1.00. The trade shows last price is this trade but it was an exercise so I am wondering if that number is somewhat arbitrary?
I was a little surprised as there is no ex-Div date in play. 90% of my put exercises involve an imminent Ex-Div date if my contract is way in the money. Maybe they are announcing BK tonight? I don't know LOL. I know it is highly unlikely I could have closed that option for $1.00 anytime today. I am just curious about the mechanics of an exercise.
I sell puts on ALE fairly regularly, and occasionally a call if it spikes. I never intend to buy them back because the options are just too low volume. It's just a hassle. The stock is not particularly volatile but it can be intraday so premiums can be decent. I throw out a price I like and when I have a minute I'll adjust it down. I get my way or I try again another time. None of that really matters other than the point that it is a lousy choice for quick trades. The spread will get you if you are in a hurry to close.
Anyway I was called out of my ALE shares a few months ago on a covered call sell at 70. I sold a couple JUL 16 Strike 70 put contracts at 1.20 and 3.00 over the past 24 days. I was exercised today and these were the only two ALE put contracts to trade today. My broker lists a 2:30PM trade at 1.00. The trade shows last price is this trade but it was an exercise so I am wondering if that number is somewhat arbitrary?
I was a little surprised as there is no ex-Div date in play. 90% of my put exercises involve an imminent Ex-Div date if my contract is way in the money. Maybe they are announcing BK tonight? I don't know LOL. I know it is highly unlikely I could have closed that option for $1.00 anytime today. I am just curious about the mechanics of an exercise.