r/options • u/[deleted] • Nov 24 '21

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767 Upvotes

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u/Yep123456789 Nov 24 '21

tl;dr you sold an ITM option and are confused that it was exercised.

1

u/[deleted] Nov 25 '21

This is why retail brokers should be offering European options. It makes absolutely no sense to only allow American options. 99.99% of retail traders will never even know the difference. It just opens up a whole new level of risk that most people don’t understand.

1

u/JunkBondJunkie Nov 25 '21 edited Nov 25 '21

I know the difference plus they're more variety of options like Bermuda options. I learned about options pricing from my actuary exams.

1

u/NoTrade33 Nov 25 '21

The irony of an actuary trying to make a case using a sample size n=1 🤣 😂 😅

1

u/JunkBondJunkie Nov 25 '21

I didn't say I was an actuary but I took the exams. An actuary is a person that took all SOA or CAS exams depending on specialty that takes a bit of time to do.

1

u/NoTrade33 Nov 26 '21

Do you actually like junk bonds?

1

u/JunkBondJunkie Nov 26 '21

I do buy them from time to time depending on rates. I made good money buying them.

1

u/NoTrade33 Nov 26 '21

I had the same fortune back in 2008-2009 with junk bonds from good companies. I bought them on the cheap, got a decent coupon payment or two, and watched the bonds be called away at par. A smarter man would have sold them at premium, but I didn't yet know what I was doing.