Mohacsy's Safe Portfolio Member Forum

[10nisman]

<<< I sold $20 February call options on all of my Ford shares for $1.31 a share in mid-November. A week ago these options were trading for roughly $5.50 or more than a 300% gain. Today, at market close, all my shares are still in my account. I'd assume they'll close this trade at the current 65 cent value and walk away with a 50% loss. It makes no sense to me but I've watched this happen too many times to care why. I've also seen in-the-money options not exercised but it's very unlikely to happen with this trade. >>>

Why would they take ownership of the shares when they have another month to exercise? There's no incentive to exercise until expiration. Also, you have no idea how many times the options you sold have been traded nor the underlying purpose of the options holders trade (hedging a short position, etc.)