Alan answers a question posed by Hai, who asks:
Alan, I bought 100 shares of SINA on 5-22-17 for $104.70 and then sold the $105 call for $5.85. Last week (June 5th), the price was down and I bought back the option for 20%. I tried to roll down but the order did not go through. I spoke with my broker who said it had something to do with changes in the number of shares and options were not available that day. Can you explain this situation?
Thanks a lot.
It’s the 2nd Wednesday of the month. Time for another original episode of Ask Alan. AA#138, “Disappearing Options, Gap-Downs and Contract Adjustments”
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