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    CRWD scenario insights needed

    Context: S&P announced after COB Friday that they were including CRWD in the 500 index. The stock had closed at 349.12 and went as high as 370 in AH.

    I did not have a position in CRWD on Friday and I feel for those who were on the wrong side.

    Scenario 1: Someone had sold a 350/355 credit call spread expiring Friday (June 7). They got assigned on the short leg. They did not exercise the long leg. Would they have been able to call the broker and exercise the long leg, anticipating an assignment on the short leg? Let’s assume they needed a lot of money to exercise the long in the absence of an assignment.

    Scenario 2: Say someone had bought the 350/400 call spread 200X expiring Friday on a $500,000 account. Is there any way they could take advantage of the AH move, without having the money to cover the exercise? Any brokers that would front that kind of cash to clients? If they can’t exercise all of it, how can I calculate how many of the options i can exercise?

    CRWD scenario insights needed
    byu/ConfidentTie1529 inoptions



    Posted by ConfidentTie1529

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    3 Comments

    2. Any-Television-3394 on

      1: Yes

      2: You dont need to exercise in this situation. You can close the spread next week for any profits.

    3. MinuteCorner on

      I think that we were supposed to call the broker before Friday 5:30 PM EST to exercise. Unfortunately, I didn’t know that the short leg was exercised until the day after, since there was no update on either leg of the position until today (Saturday).

      I had this issue as noted on this thread:
      [https://www.reddit.com/r/fidelityinvestments/comments/1db20wz/crwd_options_assignment_question/](https://www.reddit.com/r/fidelityinvestments/comments/1db20wz/crwd_options_assignment_question/)

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