AMD 455 call options not assigned -- a bit puzzled.
I usually trade 0DTE index option spreads (follow u/papakong88 's strategy). On some Fridays (and some Mon and Wed for names like TSLA/META) will sell 0DTE equity option spreads. On Fri 5/8 had a large short position in AMD call spreads and had to scramble very hard in last 10 min of trading due to AMD crossing 450 and then 455.
Was short 40 AMD 455 calls expiring on Fri 5/8-- tried to buy it back in the last minute before close on Fri but did not fill. AMD closed at 455.19. After hours for the next 90 minutes except for a couple of 5 min dips to 554, AMD stayed above 455 -- actually closed at 461 at end of extended trading.
All calls expired -- this was so unexpected. The holders must have called in to avoid auto exercise. But all 40 calls expiring -- did not expect that. I might have expected 10 or 20 to be assigned.
I called Schwab twice on Sunday to confirm there was no assignment -- wanted to have a way to handle the assignment in Sunday night trading itself by closing any short position -- it is 1.8M notional short amount. Schwab confirmed all the 455 calls expired. I don't see any AMD short position in my account. Fingers crossed that Schwab does not post a late assignment tomorrow morning.
AMD hit 470 at ~5:30PM Pacific on Sunday. This whole episode is very puzzling.
Update (45 min to open on Monday) --
I don't see the shares in my account -- safe to say no assignment. AMD is 463 pre-market.
From the margin perspective when AMD closed at 455.19 -- it represents a $19 gain but would require $45,500 in capital. My guess is -- due to the high notional value Schwab had a silent DNE for retail accounts *unless* the account had sufficient equity to handle assignment. Or most retail holder/market makers called Schwab/their broker or CBOE and did a DNE -- would you risk $45,500 over the weekend for a $19 gain when AMD could easily drop 5-10 points? And if you had 10 contracts -- it would be $455k in notional risk for 190 in gain.
Update 2 -- here is some additional background. Tail risk bites you hard.
On Fri started writing AMD call spreads when it was in tje low 430s. As it settled in the 442-447 range became a bit complacent and built up 450/452.5 and 455/457.5 call spreads -- notional risk was ~70k. Most of the 450 CS closed at ~12:30 but a handful remained. I made a concious choice not to close the 455/457.5.
Last 10-15 min before close AMD rallies up above 450 and in last 3 minutes above 455. Rolled out the 450s to this week's 500 calls (naked instead of spread). Partially closed the 455s but 40 did not fill -- even with a limit order of $1.
My account had just enough equity to buy 4000 shares in after market at a blended price of 455.7 and made the 455 calls covered. Was prepared to take a loss of 2800 on these 40 contracts. Surprised on Sat when account showed 4000 shares (and the -1.8M 😞). Had zero interest in holding this till Monday and wanted to close ASAP. Called Schwab a couple of times on Sunday to verify that there was no assignment. At 5PM when Sunday trading opened sold all AMD at bid (blended 458.5 price) -- all the fills right at 5PM are mine and I pulled down the price. AMD went to 470 in next 10-20 min and if I had an iron stomach I would have made an additional 20-30k. But not worth the risk.
Net -- the extra unanticipated profit on Sunday. Used this to pare down my 500s in half. Still have a short 500 call position to work through