Mind if I just have one little say about oppies at the death?
My son used to work at Tibra who were an option market maker and he tried desperately to explain the arbitrage trades when trading push and pull options both long and short. Left my poor little brain in a tither.
One thing I did learn, however, is that when oppies near their expiry date is the time when big players can come in looking for arbitrage. (that is when you can make two trades at the same instant which are materially neutral - one cancels the other - but cash positive. eg if you hold heads and can sell them - or short them at 1.2c -- and you can buy OAs at 0.1c and convert them at 1.0 then if you make those two trades instantly you have a guaranteed 9% at zero risk.) Often they are expecting peeps who cannot afford to exercise to sell at any price.
IMO it is not the place for the faint hearted or inexperienced to be. And if you hold OAs you probably have to exercise if you can afford to because there may be no buyers at all. At that time what you paid for the options is not important - it is history - the only issue is the comparison between the exercise price and the heads.
If the heads fall below the exercise price you have to let the oppies lapse and you score 100% loss.
It has happened to me, and it certainly makes you treat oppies with some caution.
Eating Puffer fish in a Japanese sushi restaurant must be a bit like having mills of oppies at the death.
Sorry. That was a bit of a ramble but DYOR and GL
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