I want to know what to do with sell put or sell call options...
$第一共和银行(FRC.US$ I want to know what to do with sell put or sell call options?
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101802833 : Did you sell calls and puts prior to FRC's suspension? If so, you can pocket the premium you have sold those options for, without any fear of the call and put buyers exercising their options against you. Ie, if you have sold 1 call and 1 put option for 2 dollar each, you can regard your profit as 4 dollars without doing anything else.
Mason Chan OP 101802833 : So the sale 4$ put due this Friday won't be exercised, and I earned a premium after that, right?
101802833 Mason Chan OP : Yes, as long as you have sold your put prior to FRC's suspension, however much you sold your put for, you will just pocket the premium, end of story. congratulations on being one of the few winners from this tragic story.
etch Mason Chan OP : Basically those options that you sold if it is not exercised by the buyers, it will expire worthless and you get to keep the premium
104232243 101802833 : Seems like the bearish options I sold were directly converted into a new symbol, and I would lose money as soon as the buyer exercised their rights
101802833 104232243 : Yes I have made another post regarding this. The main issue was due to the fact that the move to OTC was only in a matter of days , instead of weeks/months like I anticipated. The scenario I mapped out was based on my expectation that the OTC move will not happen this early and the puts you sold will expire worthless and you get to keep the premium. However, since the move occurs now, the puts you sold did not expire like I expected and people are able to exercise their options before the their expiry.