So I made the mistake of buying some DISH stock a year or so ago, Echostar bought them out and now I own 100 shared of SATS. The stock was stinking it up sinking to around $15, at which point I am down $1000 on a $3000 buy. SO a month ago the stock creeped up to $19 or so and I decided to sell a call on it @ $1.90, exp december, this guaranteed me a small loss if the option was exercised, but gets me out of the stock. Well as soon as I sold the call the stock takes off like rocket, my $1.90 calls are worth over $7.00 now, and I can't do anything until December. Why hasn't someone exercised the option? My money is now tied up, and there is no way I am buying my way out of the option and taking a huge loss. What was my mistake? Sorry for the diatribe
Waiting on my call option to be exercised
byu/Report_Last inoptions
Posted by Report_Last
4 Comments
I am new to options but if you buy back the calls wont you essentially break even overall as you keep the profit on the shares but lose on the money used to buy back the calls,?
In general, this is a common beginner question. You are not going to get assigned if the option has any extrinsic value remaining. It would be a waste of money for a long to exercise. They would be better off just selling the option.
Having said that, we can’t look up your position and verify, since you left out the most important detail: the strike price of the option you sold. That is way more important than how much premium you received to sell it or what it is currently worth.
There is a market for the calls and it’s open Monday through Friday. Buy back the calls and sell the stock.
Buy to close the call and sell the shares anytime to free up your money to do something else for the holidays.
You may be able to do it in one trade with an “Unwind” trade, if your platform allows it.