re: Crashy shorts NAB, SGB..another view
Crashy Another way of looking at it of course is you have written exposure to $35,000+ worth of stock per contract for $500 reward per contact. Say you took exposure to 3 contracts (as you dont give a number) thats $150k vs $1500 and if you get excersised the $1500 you collected in premium will be gone in brokerage. I wouldnt draw comfort from the $36 dollar figure you quoted. Your chances of getting excersised over $35.50 by only a small amount are very high as the purchaser who bought your options may have done so to collect the dividend due in early June. Average weighted open interest for NAB in May is $35.61 and is rising. Good luck, I will be interested to follow your trade and hope you post further on this one as option trading is fascinating and very volatile.
Fitzman
NAB Price at posting:
0.0¢ Sentiment: None Disclosure: Held
