I’m confused on a situation I encountered today.
I had sold a covered call on HOOD with a $104 strike price expiring today. HOOD closed at $101 at market closed but then obviously shot up after the S&P add.
I thought my shares were safe since at 4pm close it was still $101 but I got a notification tonight that my call was assigned and shares called away?
Do covered calls not truly expire until after hours trading ends?
Shares Called Away After CC Expiration
byu/treeznstuff inoptions
Posted by treeznstuff
2 Comments
Options get exercised subject to after market price movements. To avoid the risk of shares getting called away, people usually close their options out during the market session to avoid exactly what you just experienced.
Options can be exercised during after hours