Trova il tuo prossimo podcast preferito

Abbonati oggi e leggi gratis per 30 giorni
#388 - Can You Exercise An Option Contract Even If You Don't Have The Buying Power For The Stock?: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer a user question that was submitted which is, “Can you exercise an option contract even if you don't have the buying power for...

#388 - Can You Exercise An Option Contract Even If You Don't Have The Buying Power For The Stock?: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer a user question that was submitted which is, “Can you exercise an option contract even if you don't have the buying power for...

A partire dalThe "Daily Call" From Option Alpha


#388 - Can You Exercise An Option Contract Even If You Don't Have The Buying Power For The Stock?: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer a user question that was submitted which is, “Can you exercise an option contract even if you don't have the buying power for...

A partire dalThe "Daily Call" From Option Alpha

valutazioni:
Lunghezza:
3 minuti
Pubblicato:
Oct 15, 2018
Formato:
Episodio podcast

Descrizione

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer a user question that was submitted which is, “Can you exercise an option contract even if you don't have the buying power for the stock?” This is an interesting question, but basically, the person emailed in and said, “If I had a debit spread or a credit spread and I didn't have the buying power to exercise the option, could I still conceivably submit the order because it's covered by the other contract that’s out there?” And so, the short answer to this is probably no. Your broker is going to reject that order when they see it coming through. You could probably get all the way to submitting the exercise, but when it actually starts going through the system and through the technology to be able to actually exercise that contract, buy shares of stock or sell shares of stock depending on what contracts you’re trading, then it's likely going to get rejected at the broker because you don't have enough buying power to enter that position and hold the underlying shares and yes, this means even if you are still trading the other side of a spread because even though you’re trading the other side of a spread, that doesn't necessarily mean that it's covering the fact that you want to own shares long or short of the underlying security. Great question. Again, as always, if you guys have other questions like this, even little one-off questions that come to mind, please submit them to us. We’d love to get them as part of the daily podcast and the daily call here, so again, if you guys have any questions, let us know and until next time, happy trading.
Pubblicato:
Oct 15, 2018
Formato:
Episodio podcast