DWAC option trading risks

Sharing is Caring!

by Ken385

If you are trading DWAC options today, be aware that the current Hard to borrow rate of short stock is around 100%. This will cause certain spreads, such as boxes, to trade higher then the normally would.

Deep in the money calls will have a higher risk of early exercise, so be aware if you have any spread where you are short these calls. If you are assigned early, you will have to pay this hard to borrow rate for at least 1 day.

See also  The Fallacy of taking bigger risks when you are young
See also  Joe Rogan: If Insider Trading Is Illegal, How Did Nancy Pelosi Get $150 Million Dollars?

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.

272 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.