I am posting in this in the forum as my other attempts to raise a query with the administrators have not been successful.
I am the owner of Eggs and Bacon which is performing quite well but should I think be performing a lot better. On 15 February, a trade was entered for me that I do not recognise (short 200 units of the SPY ETF). This has caused a $900 dent to my performance. PLEASE tell me why thia trade was entered.
Thank you
David [LINKSYSTEM_84990049]
You were assigned on the 183 call that you sold short.
Hi Matthew
I appreciate your response. I thought that would be your response but I’m confused as to being assigned on my short calls left me with a short ETF position.
When my 2 calls were assigned, that gave the holder of the long calls the right to purchase two lots of SPY for $183. So, surely you should have purchased the stock at the prevailing price (about$185 I recall) for me to deliver at $183. That way, I would be left with no residual position but nursing a small loss. This article reflects my understanding: http://www.theoptionclub.com/2011/07/what-happens-when-you-are-assigned-on-a-short-option/
If I am wrong, I’d be grateful if you could explain and I would gladly acknowedge my error.
Thank you
David [LINKSYSTEM_84990049]
That’s not how it works. When you are assigned on a short option position, the assignment occurs at the strike price.
