I had sold a vertical AMZN sell 295 PUT and Buy 290 May 2014
Its trading at $294 right now...
So, how do i know the strike price when it will get exercised so I can close it out beforehand ?
Thnks
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I had sold a vertical AMZN sell 295 PUT and Buy 290 May 2014
Its trading at $294 right now...
So, how do i know the strike price when it will get exercised so I can close it out beforehand ?
Thnks
This strike price will be minus "the trade price" and not the credit I received, is that right ?
The MAY14 options do not expire for 18 more days. During that time they will still have extrinsic value (google it). If someone were to exercise the put they would be losing the extrinsic value left in that put. It happens...but not very often. And if it did just exercise your bought calls and it will all work out. Unless you like being long that stock.
