Suprised my Covered Calls didn't execute

[medloh 0]

First Post here.  Looking for a community to discuss Options trading.

I've been selling covered calls for a few months, so I'm still learning the fine points.  Something happened this weekend that surprised me...

I sold 2 235 FDX calls a few weeks ago, expired Friday (Oct 29) ITM (235.53).  But my broker just let it expire without executing.  That's .53 * 200 or ~106$ someone passed up.

Is this unusual?  Or, do CCs that expire just barely ITM not execute frequently?

 

[sreevem 9]

How much premium was paid?

[TrustyJules 3,212]

9 hours ago, medloh said:

First Post here.  Looking for a community to discuss Options trading.

I've been selling covered calls for a few months, so I'm still learning the fine points.  Something happened this weekend that surprised me...

I sold 2 235 FDX calls a few weeks ago, expired Friday (Oct 29) ITM (235.53).  But my broker just let it expire without executing.  That's .53 * 200 or ~106$ someone passed up.

Is this unusual?  Or, do CCs that expire just barely ITM not execute frequently?

 

Its actually worse because after hours FDX climbed to 236.86$ - BTW if you sold the options its not your broker but the other broker who will be doing the exercising. According to everything I know this happens automatically when an option is even 0.01$ in the money. The notification about this is not due until Monday and there are many cases of people who thought they got away only to find on Monday before the open the exercise did take place. Therefore my guess would be your trade confirmation is not yet definitive and you will find on Monday your shares were called away (as you stated the calls you sold were covered).