Has anybody thought of shopping for deep within the cash name choices and early exercising them straight away, as is allowed for American type choices, as a technique to take assured supply of the shares with out encountering any FTDs? This was beforehand mentioned on this WSB put up. The decision choices ask value + the strike value of the present deep ITM calls are usually fairly near the present market value. The tax implications of this technique are additionally no totally different than shopping for the inventory on the market value, as the choice premium value is added to the strike value to kind the associated fee foundation (which is fairly near the market value) for tax calculation functions, as described on this article. IMHO, this can be a method that can be utilized to keep away from the value suppression by way of bare shorting that many shares are all experiencing, proper now, particularly closely shorted shares like BBBY? What do you all say?
Full Disclosure: I’ve an extended place in BBBY.
