allan

yes, so avoid super crazy stocks is truly lesson learned.

yes, you are right, there is still a risk there. thanks.

like I said in my previous post. Why don't you ask your broker to exercise your long 115 call? assuming your position is 105-/110/115 BF. You are shocked by assignment of short 110 call. But you have the right to exercise your long 115 call, right? your broker didn't allow you to do so? maybe you can sue the broker, isn't it?

no, it won't. remember that my total risk with the put credit spread is $10. And I have already more than $10 credit in hand. And I already get rid of the troubling call part. where is my risk?

what I do is to make even of the call spread. With two leg of the calls be settled. My temporary booking will be: $10 - credit from the call spread. I will left the put credit spread there, now my total risk is the width of put credit spread, which is 10, while my total credit is more than 10. so there is no margin required, I can just sit and wait will expiration. no body can force me to close the put credit spread.

So thats the problem of the broker. They can assign short stock to me, although I don't have the stock. While if I want to assign my long option right, I can't assign them, because the broker can't find another client with the stock to let me do the assignment. Maybe there is a chance of legal action?

I am newbie here. It's a sad story. But I just didn't get it, maybe I am wrong. If you have a 100/110/120 iron fly. Then you have a 110/120 call credit spread in it. With the short 110 call be assigned, yes you will carry huge borrowing cost. But remember you have same amount of long 120 call, you can immediately ask broker to assign that part of the long call, to offset the shorted stock. That shall make the book even, with no additional loss. Am i missed anything there?

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