Was wondering if exercising an OTM makes sense in this scenario:
Bought a calendar spread on INTU on the earnings announcement – sold the 665 that week and bought the Sep 20 665…..the short expired worthless that week, so I sold a lower strike the next 2 weeks to pocket some $ but now I just got assigned 100 short shares at 635 and still holding the Sep 665 long option…. so basically if I exercise the 665 option, will I be at a loss? The way i see it, I'm short $63,500, but then buying $66,500 on exercise = $3k profit (minus entry cost)? is this correct? Thanks for any info
Posted by 135Oakgrove