(07-12-2021, 09:53 PM)NilesMike Wrote: I will speculate that the remaining open interest in ALE puts is MM options to offset some calls. You may have been the only one to have been trading unhedged naked puts in ALE?They weren't naked from my perspective but I understand what you mean and it is possible there were no corresponding calls open. I don't search these odd ones out. I can't think of any others besides ALE. Not really part of my normal strategy. I just do it to get my share count where I desire. My UTEs went very flat due to economy slow down and ALE pays a good premium so I bother since I have no need to close them. My ALE options return exceeds my ALE long shares by a good margin lately.
YOU probably couldn't buy them back for $1.00 but THEY can.
I know you like these oddball low liquidity trades for the high premium but it really goes against most option trading strategies that stress liquidity first and foremost.
In any event it's not a core holding so I have most of my shares back at a decent entry. I was just surprised by the exercise. It occurred to me another small retail trader wanted to close his puts and had trouble getting his trade to drop. An exercise would solve that.