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Started By
Message
Covered calls Question
Posted on 9/6/25 at 7:40 am
Posted on 9/6/25 at 7:40 am
I had $108 covered calls expiring yesterday on Hood. The stock closed at $101.25 and I got assigned. It was announced that Hood got in the S&P 500 yesterday but that was around 4:30pm CST well after the bell. How did I get assigned when the stock closed $7 below the strike?
4
Posted on 9/6/25 at 7:43 am to bogart
Someone was willing to pay that price at the moment.
Seems odd to me, but it is what it is.
Seems odd to me, but it is what it is.
Posted on 9/6/25 at 8:44 am to bogart
You have until 4 or 4:15 ET to exercise options. Not sure when the announcement was made but there has been a lot of speculation that Hood would be included this time.
Posted on 9/6/25 at 8:48 am to bigjoe1
The news didn’t come out until 4:30 CST. The stock was flat until the announcement and then jumped to around $108. If the buyer wanted the shares then why wouldn’t they just let the shares expire and buy the stock for $101.
Posted on 9/6/25 at 10:05 am to bogart
Were you using Robinhood as your platform?
Posted on 9/6/25 at 10:26 am to BourbonDad
Fidelity. Looking online it seems like you can go through your broker and have them manually exercise the options up to 4:30 pm CST. I still don’t think the news had been released by that point, I guess someone just rolled the dice and gambled they would get in and the stock would go over $108. It still seems like they could have bought the shares for cheaper in after hours. Maybe they didn’t have enough unrestricted to do that. I’m just pissed because I wanted to keep the shares, I guess that is a risk of selling covered calls.
Posted on 9/6/25 at 7:49 pm to bogart
quote:
If the buyer wanted the shares then why wouldn’t they just let the shares expire and buy the stock for $101.
Depends on the premium they paid.
Posted on 9/6/25 at 8:03 pm to southernelite
Not much. Maybe a few hundred dollars.
Posted on 9/7/25 at 6:26 pm to bogart
It moved AH just enough to end ITM or someone wanted to gamble on news. Should have closed those before the bell. Never let sold options expire especially something with volatility rumors on being added to the S&P.
This post was edited on 9/7/25 at 6:27 pm
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